JWResource – Startup cashflow management
JWResource is a London-based recruitment company specialised in technology. Initially focused on providing permanent IT resources, the company has broadened its offer to also provide contractors to a wide range of industry sectors including software, asset management, financial services, media and insurance.
The Challenge
Founded in August 2009, JWResource is a startup company and therefore has very little credit history. Its Directors, however, have extensive experience and a large network in the IT sector developed at previous positions in the recruitment sector, meaning that quite a few commercial relationships actually dated back several years.
The company is growing rapidly and therefore needs to carefully manage cash flow. Contract IT work in particular created working capital challenges as JWResource has to pay contract IT workers after 14 days while end customers, largely blue chip companies, pay after 30-45 days. JWResource considered traditional factoring, but this required personal guarantees, financing the entire sales ledger and, as the use of this facility would be disclosed to end customers, could potentially damage relationships that took a long time to build.
The Marketinvoice Solution
After a quick sign-up process with MarketInvoice, company information about JWResource was provided to our pool of global institutional investors. Unlike with traditional sources of finance, these investors considered the well-established commercial relationships already in place, despite the company itself having a short trading history. With MarketInvoice, JWResource gained access to a finance solution that fully met its requirements for flexibility, competitive rates and confidentiality. It is now able to finance invoices selectively, generally obtaining up to 90% cash advance on the face value of the invoice and total costs as low as 1.5% of face value. The Directors also welcomed the fact that MarketInvoice did not require any type of personal guarantees.
