Our client approached us with a problem: there was a new contract which they had been offered but taking the new contract meant having to find cash to fund the increases in operational costs. Our client saw several solutions:

1. Equity Investment: Great short term solution that provides an influx of cash but very expensive. You have to sell a part of your company for a short term problem
   
   
2. Corporate Loan: If your company is less than two years old and/or has not been profitable for the last two years it will be very difficult to receive a loan from your bank and you will most likely be asked to provider a personal guarantee
   
   
3. Asset finance: Most recruitment companies have limited assets and they finance companies will not finance office equipment and computers at a reasonable rate.
   
   
4. Overdraft: Great short-term solution but will not grow with your turnover and can limit your growth. And if the bank ever gets worried they can recall or limit the amount of the overdraft.

We offered the factoring solution, which our client had never considered before. The services factoring offered came as an epiphany and we helped put a solution in place the next week.

Our client remained 100 owner of the company, didn't loose rights to any assets, didn't have to rely on their bank and didn't have to go through the ordeal of applying for a commercial loan.

Factoring was the perfect solution to their cash flow needs.