Business case
Our client, a staffing provider and recruitment agency, was seeking support to optimise their net working capital (NWC) and improve their liquidity.
A common practice in staffing companies is factoring, namely the sale of accounts receivable to a third party at a discount. By identifying other actions that would improve either net debt or the intra-month swings in cash flows, we were able to further support our client and achieve its goals of improved NWC and liquidity.
We assisted the client in identifying actions that would improve its NWC and liquidity by extensively analysing our client’s funding requirements, intra-monthly NWC swings, cash swings and payment terms, invoicing and factoring.