NatWest Rapid Cash helped this refuse collection company bin their cash flow worries during rubbish times.
Mo Maan has been running Skip It since 2015, having joined the firm just nine years earlier as a labourer. Rising through the Surrey-based company, Mo has experienced first-hand everything life throws at his business, sometimes literally – this is a refuse collection company after all.
But Mo, faced more than just unpleasant smells in his day-to-day work, unpleasant cash flow issues started causing difficulties.
“All of our efforts are aimed at customer satisfaction, and because of this we have reliable, consistent customers who use us regularly. But their credit terms could be up to 60 days, meaning we’re still not paid two months after providing the service. In that time, we’d have outgoings such as salaries and other monthly bills to account for.
“When the pandemic hit, things got even more challenging. Our workload reduced, we had fewer orders and our business forecast changed drastically”.
So, with the dual challenges of regular customers on generous payment terms and new customers retreating under threat of coronavirus, the refuse company’s prospects were looking increasingly rubbish. That’s when Mo turned to NatWest.
NatWest Rapid Cash to the rescue
“To be on time with my company’s monthly outgoings, I use NatWest Rapid Cash. It’s so straightforward, and I use it regularly. I choose the outstanding invoices I want to borrow against via the NatWest Rapid Cash dashboard, and the bank transfers 70% of the amount that my customers owe into our account.
“I didn’t have to change my business terms with my customers, and because of NatWest Rapid Cash, Skip It was not out of funds at any point during a difficult year. I didn’t have to take out a business loan with a high interest rate, because NatWest Rapid Cash allows me to pay my employees on time and easily manage my monthly budget.
“After my customers have settled the outstanding invoices, I am able to pay back to the bank. It is a win-win situation and I would definitely recommend this product to any business seeking a steady cash flow in these uncertain times”.
What could Rapid Cash do for you?
To be eligible for Rapid Cash you must be trading for at least 6 months, have an annual turnover of at least £100k and either be a Limited Company or Limited Liability Partnership registered in England and Wales. Additionally, you need to invoice other businesses and use one of the following digital accounting software: Xero, Quickbooks, Sage 50, Kashflow, FreeAgent and Netsuite.
Security and guarantee required. Interest on borrowing. Product fees may apply.