Marginal gains are the key to success

An ambitious contract recruiter with 30 contractors working to very low margins. 

The Problem

Our Client’s invoice discounting facility (IDF) was only paying out 80% of gross invoices. They also had issues with the concentration of their debtors because one debtor made up a huge part of the total debtor book.

This meant the bank wasn’t allowing our Client to increase what they could borrow, even though the increase was as a result of growth. This was causing issues around cashflow, debt to family members and put the business at risk of not paying VAT and meeting their payment plan with HMRC.


The Solution

Azuki carried out extensive financial modelling to show what the break-even point was for cashflow. Our Client was able to negotiate with their end Client an increase of 2% on margins.

We helped them to go out to market and refinance their IDF line to borrow 90% of gross sales invoices with no limit on concentration and no limit on the amount they could borrow due to size.


The Outcome

Within one year they had paid off all the debt and our Client able to pay the owner a £300k dividend. The owner now works abroad for 9 months safe in the knowledge that we look after everything for him.

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