Siemens Financial Services (SFS) is to provide invoice financing for UK-based recruiter 1st Executive Limited with an increased funding limit.
The specialist recruitment firm, which describes itself as “Europe’s largest specialist recruiter within procurement, supply chain, risk, sustainability and finance”, says it has recorded consistent growth for the past 15 years and had initially relied on a high street bank to provide its invoice financing.
However, following industry-wide changes to credit policy for the recruitment sector in 2019, it became clear that the bank would be unable to support the firm’s future growth plans.
Gary Noble, managing director of 1st Executive, explained the rationale behind their decision to partner with Siemens FS: “With the new credit policy, we were limited in the amount of debt we could take on our ledgers, meaning we couldn’t provide the same level of service and risked losing long-term clients.”
Noble said: “One advantage SFS has over the mainstream is its market software and technology which makes the big banks look antiquated.”
Like most businesses, 1st Executive must look to retain a healthy cash flow, deal with operational costs and continue to invest in growth.
This balancing act represents a challenge for businesses that would typically have to wait for customers to pay them for goods and services which have already been delivered.
Through invoice financing, providers can advance up to 90% of a client’s invoices, depending on their value, with the remaining 10% being paid once customers settle the balance.
John Kennedy, Invoice Finance head of sales at SFS London, said: “1st Executive has developed one of the deepest talent networks in its specialism. From our perspective at SFS, there is no reason to put overly complicated and restrictive credit limits on their client base, chiefly top-tier global corporates. Our approach was, and will continue to be, to give the company room to grow.”
Siemens Financial Services operate across numerous sectors and provide a range of other business finance solutions. They provide capital for Siemens customers and external businesses, alongside serving as an expert advisor for financial risk within the company.