Vanguard SAS

When Gail Parsons joined as a director about 11 years ago she soon realised that cash flow was an issue, simply because of the way the business operated. Despite serious reservations about factoring she started partnering with Ultimate Finance in 2002 and has become our longest established client.

Cashflow woe

Gail explains that “You start a job, you work it for a month before you can raise your first invoice, then it’s supposed to be 30 days, but it’s probably 60, maybe 90. The time is clocking up, and I pay my staff weekly. So I’ve probably got to find three months wages up front! I was always worried about how we were going to manage every time we took on a big job.”

The bank were happy to arrange an overdraft “but that was costing me interest and it wasn’t flexible enough. Sometimes the facility would get up to £10,000 or £15,000. I figured factoring would be cheaper, and would work better. However, I was very nervous of introducing a third party to my clients in case it upset the relationships, plus I thought I might lose control.

Some companies I deal with use factors, and I’ve been on the receiving end of some rather unpleasant calls where they’ve been very heavy handed — stroppy from the start. I certainly didn’t want my clients being treated like that! Also, if you look at our invoices you can see what services we provide — they reveal details of my clients security arrangements, so they are highly confidential! So I and my clients needed reassurance on both those points.”

A flexible service that Gail and
her clients were happy with

Gail did her homework and drew up a list of companies that she then researched and met up with. “Ultimate were a very small firm back then, but I really liked them. The fact they weren’t too big was a positive — I realised it would be easier to communicate with them, and that the service would be a lot more personal. I knew if I had to get hold of someone in a hurry then there wouldn’t be a problem. Plus they were great at tailoring the service - they were very quick to understand how I ran my business, how my clients ran their businesses, and they were very happy to fit in with those things. They built up very good working relationships with all my clients, and everyone has been very happy about it.”

All the help you need

“For 9 years Ultimate have been brilliant. If I’m in a flat panic, they are straight there, they always do whatever needs doing to save the day....every time. I make the occasional mistake, and they help me sort it out. It’s not like “that’s your problem, tough!” Sometimes they need to check with someone else, but that’s done instantly, and the answer comes back quickly. I mean in minutes, rather than hours. And a bank can’t work that fast...they seriously can’t!”

“Another thing I find very good about Ultimate - the internet facility. I can get all the information that I need, for my book keeping, for my accounts...all the history, all the transactions and entries are there - and that saves me hours. Because all the information is at my fingertips, at all times. And it’s safe, and it’s secure. Also, it’s very easy to operate, very easy.”

“If I pick up a big new client” Gail continues, “Ultimate checks them out, to see where the potential pitfalls are likely to be. That saves me huge amounts of time, and gives me confidence, because I’ve got some experts looking out for me.”

Professional credit control at a fraction of the cost

“Ultimate does all the chasing,” smiles Gail, “and that saves me HOURS! Without them I’d have to pay a credit controller and that would cost me a lot more, plus I’d have the hassle of managing that person, and all the employment law issues that go with it. Also I work from home, which is an important factor. If I employed a credit controller I’d have to rent premises. By outsourcing my credit control I save loads of expense and aggravation.”

Gail is also full of praise for the Ultimate staff. “The turnover of people in those 8 years has been absolutely minimal so my credit controllers really get to know me and my clients. We’re in regular touch with emails going back and forth, and we meet once a year — it’s a close relationship.”

“When I meet with my bank manager,” she continues, “he’s looking at things from the point of view of what he can sell me. With Ultimate they’re just interested in looking at ways to improve the service, and ways to match my needs. They’re not trying to flog me anything — they’re just genuinely interested to nip and tuck everything to make sure it’s on track with what’s happening in my business.”

“If I have a client who is struggling with cash flow issues I don’t need to worry about that, or bring it up in conversation, because I know Ultimate are on the case. I can just focus on giving my client good service — there’s no need for me to have that uncomfortable conversation, and risk spoiling the relationship. Having said that, Ultimate are very quick to sense when something is wrong, and to inform me if I need to be aware of an issue. I may take it from there, or we may decide that they’ll handle it. I always have a lot of money outstanding, at risk, so I really appreciate the fact I’ve got these experts looking out for me”

A way of doing business that makes more sense

“You’ve got to look at cost” Gail concludes, “and if more business people did the maths, and actually worked out the true cost and aggravation of doing their credit control in-house, they’d factor. But it’s important to go with a really good company. I’m very happy with Ultimate, my clients are happy with them, and we’ve both got confidence that the details of the security arrangements will remain confidential. Some people think factoring is just for companies in trouble. That’s nonsense. If I have a client who questions why I do it I just go ‘Hey, pay me up front, and I won’t need a factoring facility!’ So far nobody has taken me up on that, so I’m sticking with Ultimate.”