CASE STUDY: Business Services
At a glance
10
£22m
50
MEET THE CLIENT
On the fast lane to growth
M4 Recruitment Limited (M4) is a temporary recruitment business that has been trading since March 2016. As the company name suggests, the business began trading along the M4 corridor with offices in Heathrow, Reading, Swindon and Bristol. Driven by the rapid expansion of its specialist Driving & Industrial division, the business now operates nationally under the trading name M4 Specialist, providing an extensive range of recruitment and workforce management solutions.
THE CHALLENGE
When a fast-growing business faces unforeseen funding challenges.
After a period of successful new contract wins, combined with increased turnover from existing clients, the M4 business had reached an exciting new level of growth. However, the company received a call from its existing funding provider with news that it was looking to exit the market. Although the provider gave M4 notice, the company had no alternative but to go back out to the market to find a new funder.
As M4’s Commercial Director, Emma Smith, recalled: “After seeing huge growth as a business, bridging the working capital gap was vital for us, particularly as several of our higher volume agreements are on 60 to 90 days payment terms. It was important for us to find a flexible funder that would be easy to work with. We are aware that some of our recruitment requirements can be a bit complex and that not every finance provider would be comfortable with the concentration levels we have on certain contracts. We were therefore looking for a personable team with whom we could build a good relationship, one where we can simply pick up the phone to resolve any issues as they arise.”
THE SOLUTION
Delivering an enhanced working capital facility at speed.
After meeting M4’s management team to discuss their requirements in detail, Investec acted quickly to structure and deliver an enhanced working capital facility. This ensured the business would have continuous access to working capital without disruption, giving management certainty of funding at all times.
Emma said that flexibility and a willingness to understand the business set Investec apart: “Investec not only provided us with a higher funding limit than we had previously, but they also adapted our facility to accommodate occasional long payment terms and large concentrations, which other funders may not have been quite so willing to consider.”
What I like most about Investec is that they don’t just stick to a rigid rule book when it comes to making funding decisions. They want to understand the business beyond the facts and figures. That also means getting to know us as people and learning about specific contracts and the potential we have to grow the business. We always feel that they are on our side.
THE OUTCOME
Always available when needed.
With the support of Investec, M4 is well placed to continue to build on its success. Emma concluded: “We plan to continue on our considerable growth trajectory. This year we are on track to achieve a further 20% increase from the year before. We are looking to drive our momentum with the certainty of funding from Investec behind us to help us achieve our ambitions.
Sometimes the test of a good finance provider is that if you can just get on with your day job and don’t notice them, it means the facility is working well. That said, as a fast-paced business, it’s reassuring to know Investec are on the end of the phone if you need them at any time.
Explore more examples of partnership and progress
