Although we’re not actually using IGF to fund our invoices – merely to collect and record them – it’s good to know that we have a funding facility available if we need it. 
Paxton Restoration
Paxton Restoration is a specialist company focusing on the repair and renovation of period windows and other joinery projects. The company, which began as a one-man-band, now employs eight skilled craftsmen with over 90 years professional experience between them. Paxton operates in Greater London and the South East and is now in its seventh year of trading.
The Challenge
As Paxton Restoration began to mature and plan its commercial restoration offering, it faced a major challenge in securing a reliable cashflow stream to help with its expansion plans. Furthermore, the management team found that with the commercial work the company did, payments were much slower to arrive. As a result, Paxton sought the help of an invoice finance provider.
The high street banks did not seem ready or willing to give Paxton Restoration the care, attention and levels of service the company was looking for. Having completed 95% of their application forms with the banks successfully, Paxton was then promptly turned down at the final stage.
Richard Sullivan, MD of Paxton Restoration explains,
“We went down the usual route of turning to the banks for help with our cashflow, but after a great deal of time and hassle the banks kept turning us down. This was really frustrating for us. It seemed as though the banks would only focus on risk management and not commercial opportunity. To make matters worse, the banks seemed to pigeonhole us into the construction industry sector and therefore deemed us too risky. They never looked at us on our own merits.”
As a fast-growing small business, Paxton Restoration decided to investigate using an independent commercial finance company which had extensive experience with start-ups and smaller businesses. The management also wanted to develop a long-term relationship, which would ensure that the funding would be in place to support the company as the business grew. Finally, Paxton wanted to ensure cashflow was never a major concern, so that it could always pay its employees and suppliers as well as investing in the business. As a result, Paxton turned to IGF, one of the leading independent commercial finance companies in the UK.
Richard Sullivan continues,
“With many commercial restoration jobs taking a number of months to complete, and then customers taking at least two months to settle invoices, our cashflow would have been restricted if we didn’t have the services provided by IGF. This would have held back our ability to invest in new materials and tools, employ new staff and most importantly grow the business. Thankfully IGF came on board this year and we have seen our business continuing to grow with their support.”
The IGF Solution
IGF understands the issues and goals facing a restoration company like Paxton – both long and short-term – and offered the most flexible and cost-effective package, tailored to meet the company’s business and cashflow aims. Through invoice factoring, IGF enables Paxton to draw down cash as and when required - prior to invoice settlement dates – thereby smoothing the peaks and troughs in the company’s cashflow.
Results
Tracy Ewen, MD at IGF said:
“The problems that Paxton faced as a start-up organisation, and as a growing company, are quite common for SMEs. Raising finance effectively and then using cashflow, freed up through invoice factoring facilities, can be vital to any start-up or growth company.”
Ewen continues:
“We have been working with Paxton for some time now, so we’ve seen how IGF’s services have helped to shape the business into a thriving enterprise. Most importantly we looked into Paxton Restoration as a business in its own right with its own unique challenges and opportunities. We have tried to provide Paxton with a facility that would work best for the company and is flexible enough to support Paxton as it grows. At IGF, we are proud to say that one size certainly does not fit all.”
Moving forward
Thus far, IGF has helped with Paxton’s cashflow needs via invoice financing. Now, discussions are underway with regard to ancillary services which IGF can provide.
Richard Sullivan explains:
“We have some exciting plans in the pipeline and we’d certainly look to IGF to help us with our future and finance and service requirements. Why would we look anywhere else when IGF are quick, efficient and hassle-free? In my opinion, the smaller you are, the more fragile you are as a business, so it’s good to know we can rely on IGF to help us.”
In summary
Over the last year IGF has tailored finance solutions for Paxton, initially giving the company the financial lift required to grow the business with the right cashflow under its belt. The relationship built with IGF has benefited Paxton greatly, enabling it to plan and co-ordinate its growth strategy and ensure that all invoices are in order. Due to this successful partnership the company is now looking to expand its services into new areas, and look to IGF for assistance.
Benefits experienced by Paxton Restoration through IGF services:
- Locally-based service
- Ease of contact/accessibility
- Cashflow problems resolved through guaranteed money each month, enabling business flexibility and continuity
- Service with a personal touch
- Service is bespoke to the needs of the company, which is looked at on a case by case and individual basis.
- Cost-effective finance
- Tailored service developed in line with Paxton’s business goals and strategy