How do LTD companies obtain finance for expansion
Discussion
We have been trading for around 4 years supplying 90% of Australias Hospitals with staff. We are now looking at NHS contracts and in order to do this it will involve opening an office and filling it with staff.
Obviously in order to do this we need to obtain some funding however as a recruitment business this is very difficult to come by.
The key areas which we are looking to expand into are Permanent nursing and Medical placements into the UK from Europe and also Small amounts of temp staffing.
In order to do this we need to open an office as I mentioned previously which obviously there will be a cost to, (Circa 50k to get the call centre off the ground)
Any ideas on how to obtain funding for such a venture?
Company has been trading 4 years and has posted a health profit for the last 3 with steady year on year growth.
We just feel we need to take the next step...
Obviously in order to do this we need to obtain some funding however as a recruitment business this is very difficult to come by.
The key areas which we are looking to expand into are Permanent nursing and Medical placements into the UK from Europe and also Small amounts of temp staffing.
In order to do this we need to open an office as I mentioned previously which obviously there will be a cost to, (Circa 50k to get the call centre off the ground)
Any ideas on how to obtain funding for such a venture?
Company has been trading 4 years and has posted a health profit for the last 3 with steady year on year growth.
We just feel we need to take the next step...
We just signed up for this - nice and gentle and no client contact
https://www.business.natwest.com/business/turnover...
https://www.business.natwest.com/business/turnover...
I'm in the industry and looked at doing the same - managed to self fund in the end. However there are plenty of investors out there focused purely on the recruitment industry, many who are highly regarded in the industry and can therefore offer great advice and contacts as well as dosh:
http://www.recruitmentcapitalpartners.com/index.ht...
http://hamiltonbradshaw.com/ (James Caan)
http://www.recruitventures.com/
Good luck!
http://www.recruitmentcapitalpartners.com/index.ht...
http://hamiltonbradshaw.com/ (James Caan)
http://www.recruitventures.com/
Good luck!
If it helps, I'm a commercial finance broker and this is my game.
Invoice Discounting is an easy answer here and they love recruitment companies, however, it can be pricey.
Funding Circle has been mentioned and from the sounds of it you qualify (min 2 years trading, profitable, clean credit, need to be a home owner to borrow more than £50k) but the small print in their contracts are restrictive and there are cheaper P2P loan options out there.
And there are now a new breed of lender out there that provide overdraft type facilities you can dip in and out of so more flexible that a straight term loan.
In summary though, if you've been taking for 4 years I'd be surprised if you were struggling to get finance. As odd as it may sound, there is actually a lot of money out there trying to find good businesses to lend to so if I can help further, drop me a PM.
Invoice Discounting is an easy answer here and they love recruitment companies, however, it can be pricey.
Funding Circle has been mentioned and from the sounds of it you qualify (min 2 years trading, profitable, clean credit, need to be a home owner to borrow more than £50k) but the small print in their contracts are restrictive and there are cheaper P2P loan options out there.
And there are now a new breed of lender out there that provide overdraft type facilities you can dip in and out of so more flexible that a straight term loan.
In summary though, if you've been taking for 4 years I'd be surprised if you were struggling to get finance. As odd as it may sound, there is actually a lot of money out there trying to find good businesses to lend to so if I can help further, drop me a PM.
DSLiverpool said:
We just signed up for this - nice and gentle and no client contact
https://www.business.natwest.com/business/turnover...
Depending on how many invoices/debtors you finance, 'full' invoice discounting, should be a much cheaper option.https://www.business.natwest.com/business/turnover...
hepy said:
DSLiverpool said:
We just signed up for this - nice and gentle and no client contact
https://www.business.natwest.com/business/turnover...
Depending on how many invoices/debtors you finance, 'full' invoice discounting, should be a much cheaper option.https://www.business.natwest.com/business/turnover...
If I were a lender, I would be asking why a successful and profitable business with four years history in a high-margin cash-generative activity, presumably a commanding market position (supplying 90% of customers in a national market), with easy access to the gearing effect of invoice financing, is struggling to raise funds?
I know there is a difference between cash and profit, but a company in this market and at this stage of maturity should be able to fund expansion from cashflow. It is not uncommon for owners of successful recruitment agencies to be looking to exit at this point and re-start or travel the world etc.
I know there is a difference between cash and profit, but a company in this market and at this stage of maturity should be able to fund expansion from cashflow. It is not uncommon for owners of successful recruitment agencies to be looking to exit at this point and re-start or travel the world etc.
Thank you for all the advice, I will have a look into in over the next few weeks 
So far I have just tried the conventional options Ie Bank,
Invoice discounting wouldn't work too well for us as 90% of our placements are permanent placements with 10% on a retainer basis.
The reason our bank wouldn't touch us is most of our revenue originates overseas.
We want to expand into the temp market in the UK as this is part of our longer term exit strategy and having a hot temp desk/department seems to be the only way to add value to our existing company.
Again thanks for the help, Will send a couple of PMs too,
So far I have just tried the conventional options Ie Bank, Invoice discounting wouldn't work too well for us as 90% of our placements are permanent placements with 10% on a retainer basis.
The reason our bank wouldn't touch us is most of our revenue originates overseas.
We want to expand into the temp market in the UK as this is part of our longer term exit strategy and having a hot temp desk/department seems to be the only way to add value to our existing company.
Again thanks for the help, Will send a couple of PMs too,
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