Somerset News

Invoice finance deal helps housekeeping firm grow at a tidy pace

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Written by: Gavin Thompson | Posted 31 May 2016 17:34

Invoice finance deal helps housekeeping firm grow at a tidy pace

A housekeeping business which serves the hotel industry has secured a £2.5 million finance facility to expand.

Central Facilities Group Ltd, based in Weston-Super-Mare, agreed the invoice financing facility with challenger bank Aldermore.

The company supplies cleaning and facility management for hotel groups such as Hilton/DoubleTree, Crowne Plaza and Ramada.

The finance will enable it to increase its portfolio of retail and commercial clients.

The business was set up over 13 years ago and grew from a handful of local Somerset clients as more companies saw the advantage in outsourcing housekeeping and cleaning functions.

The firm employs over 2,000 and has tripled turnover in the last seven years.

It uses invoice discounting in order to respond to opportunities quickly and to be able to pay employees’ wages in time.

The firm has been taking on as many as 14 new hotels in a week so invoice financing helps with cash flow as it gives it access to money before it gets paid.

Managing director Kevin Robinson said: “All businesses have to consider their cash flow, and this funding from Aldermore will allow us to close that gap and react quickly to our clients’ expanding businesses, while we expand our own by taking on new clients.

“Aldermore supports our growth plans and increases funding levels against increased debtor levels quickly. We had various situations where we took on hotels or had to pay out considerable amounts in unpaid salaries within three to four weeks.

“I cannot think of many other finance sources which would have the flexibility to make these management decisions without protracted discussions, by which time the opportunity would have been lost.”

Mark Leonard, head of relationship management for the South Region at Aldermore, said: “Central Facilities Group is a really impressive business which pulled through the financial crisis and is now taking on so many more projects.

“With the new finance facility in place, the group is able to grow and expand the number of hotels and leisure venues which they service, and will be well-placed to continue to be the UK’s premier housekeeping support company.”

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