A marketing company has seen a dramatic increase in turnover since turning to Royal Bank Invoice Finance for funding.
In the last year alone, First Move Marketing Services Ltd's turnover has increased by more than 25 per cent (£300,000) with a further 25 per cent growth expected by the end of 2000.
Chairman David Amor said: "The direct marketing industry makes a major use of labour to undertake final assembly, therefore the largest single cost on any project is paid out on a weekly basis. This can create significant cashflow problems within a growing company."
The company, based in Beech Road, High Wycombe, switched to Royal Bank Invoice Finance (RBIF) for funding two years ago.
RBIF now handles the collection and payment of all the marketing company's invoices, undertakes credit checks and chases up late payment of bills.
The company receives an advance on all its suppliers' invoices and pays a monthly fee for the service.
Mr Amor said: "RBIF's invoice finance has been extremely effective in decreasing the cashflow pressure, and has allowed the company to pay suppliers without delay.
"This has not only enhanced our relationships with suppliers, but also cut down on time and costs invested into chasing bad debts."
Late payment remains one of the main causes of business failure. A recent report by the Federation of Small Businesses revealed it wrecks 10,000 UK firms a year.
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