Working Capital Case Study
Name: Stopford Projects
Industry: Engineering, design and project management consultancy
“Bibby’s invoice finance service works very well for us. Our customers don’t need to know that we use an invoice finance facility and the fact that we are in charge of all collections and credit control procedures keeps us in control and gives our customers complete confidence.”
Counting some of the world’s most successful blue chip companies as key customers, such as Shell, BP and Total, Stopford Projects has enjoyed a period of exceptional growth, particularly in the last year which has seen fuel prices soar and energy companies’ revenues rise.
Established in 1982, the firm is a one-stop-shop for the pharmaceutical, fine chemical and petrochemical industry offering leading edge engineering design and consultancy services in the field of Process Technology.
It is a specialised sector which requires first-class, highly qualified engineers at the very top of their game and a bespoke source of funding to ensure the exacting demands of the business are met.
Bibby Financial Services has been working with Stopford Projects since 2002, providing a flexible funding solution which helps to maintain a smooth flow of cash into the business at all times.
James Worley, Stopford Projects’ Financial Manager explains: “Bibby Financial Services plugs that vital time lag between issuing an invoice and receiving payment by providing us with an ongoing source of working capital. They release a percentage of the cash tied up in our unpaid invoices within 24 hours providing an immediate cash flow injection linked directly to our sales. We receive the remaining monies minus a small administration fee when our customers pay their invoices. This gives us complete peace of mind allowing us to take on new projects and expand the business without having to worry about cash flow. And it’s a win-win situation - as the business grows, the amount of funding available to us grows as well.”
With a full credit control team in-house, Stopford Projects issues all its own invoices, organises collections and chases late payment. James comments: “This system works very well for us. Our customers don’t need to know that we use an invoice finance facility and the fact that we are in charge of all collections and credit control procedures keeps us in control and gives our customers complete confidence.”