Name: Carlton Catering
Location: Rotherham
Industry: Manufacturer - Catering Equipment
Website:
www.carlton-catering-equipment.co.uk
“Bibby have been great, they are approachable and informative. The best thing about using Bibby is that they give me the money tied up in my invoices to keep my cash flow fluid, as well as providing me with Sales Aid Leasing which provides me with an opportunity to sell more product to customers by providing a funding solution that meets their needs. It is a ‘win win’ situation for me. ” comments Peter
The Problem
Twelve years ago Peter and his wife set up a catering equipment company and since then, the number of companies competing in the same sector has increased dramatically. The rise of the ‘super’ out of town shops, that sell a complete range of goods has encouraged other retailers to sell a wider stock of products, rather than focusing on one particular niche has brought further challenges to the firm.
“While larger companies can afford to branch out and expand their offering like this, smaller businesses, such as ours are often left behind as we generally cannot afford to take such a huge step.
“Additional competition was hitting my business hard. But, as every good entrepreneur should, I analysed the market and developed a new plan,” said Peter Ward.
Having identified a way to add an additional revenue stream, Peter was eager to build his business empire. The plan was simple yet effective – Carlton Catering took the products it had traditionally sold and made them also available on lease, allowing their customers the opportunity to spread payments out over a monthly basis, rather than a one off payment and still own the product at the end of the lease term. There was no catch for the customer and no catch for Carlton Catering.
The Solution
To make this a profitable proposition for the business, Peter approached Bibby Financial Services’ Leasing division and together they worked to find a suitable financial funding plan. By using Bibby’s Sales Aid Leasing solution, Carlton Catering was able to quote a lower rental to customers than if they bought the equipment upfront. This was beneficial for Carlton’s customers because it took away the pain of upfront purchase and, in turn Carlton Catering could now benefit from the new revenue stream. “It was the perfect solution, by allowing customers to spread the payments out, the products were more affordable to them,” Peter Ward explains.
To provide additional financial support to Carlton Catering, Bibby also helped by releasing 88% of the capital tied up in unpaid invoices through its invoice finance service. Allowing the business the freedom it needed to trade without the restrictions of waiting until suppliers and customers paid for services rendered. An additional benefit of Sales Aid Leasing is that the financial agreement is direct with Carlton’s customers which is far simpler than for all parties.
Working with Bibby Financial Services
Peter says, “Using Bibby Financial Services has really turned things around for my company. Bibby have been great, they are approachable and informative. The best thing about using Bibby is that they give me the money tied up in my invoices to keep my cash flow fluid, as well as providing me with Sales Aid Leasing which provides me with an opportunity to sell more product to customers by providing a funding solution that meets their needs. It is a ‘win win’ situation for me. ”