Phoenix Lubricants is a young and dynamic company supplying oils, greases and lubricants to all types of industries.
They supply all major brands of lubricants worldwide, and pride themselves on finding the right lubricant solution for any given application, saving their customers time and money. In addition they market their own products, Phoenix branded high quality lubricants, and can also supply hard-to-find or made-to-order grades.
The cash flow issue
With a small team of 4 and turnover of £300K, Stephen Harkin, the company's Managing Director, explained to us that, in order for the company to grow and develop the business, it was essential that they purchased stock to make progress. Whilst some of Phoenix Lubricants' customers paid on a pro forma basis, many were on a 30-day invoice. As most business customers on 30-day invoice terms inevitably stretch this from 30 to 60 days, it can cause cash flow issues.
The Just Cashflow solution
It was decided that the organisation needed to implement a solution to allow them to purchase stock and resolve cash flow issues in the short term.
Stephen explained to us that during the months of December and January customers were notoriously late in settling invoices and this period caused the most difficult cash flow issues. Stephen went on to say that as a business they were aware that come February the level of business picks up as the motor racing industry starts to purchase their kit and stock; therefore they needed an injection of cash to purchase the stock to sell on to these customers. The industry thrives during the summer and autumn months but difficulty would arise again as December approaches.
The Revolving Cashflow Solution was put in place and this allowed for peace of mind that stock could be purchased and overheads could be paid during the difficult or extremely busy months.
The business had approached their bank but the business manager stated they could only look at historical data, not projected figures, and so could not assist. This was of no help to Stephen as the key requirement was for funds to purchase stock to grow the business. Therefore, historical figures were not what the business was projecting for the future.
Stephen explained to us that whilst the application process was weighty and heavy with the security on the commercial premises, John, Peter and Douglas at Just Cashflow were fantastic. They were very easy to talk to and all problems and issues addressed immediately, and a breath of fresh air after dealing with the banks. A great bunch of people to deal with, he concluded.
Using the Just Cashflow service
We asked Stephen what the best part of our service was.
Stephen told us that his experience of Just Cashflow was of an organisation that is professional and extremely flexible. He added that following the experience he has had with Just Cashflow, his business would definitely utilise Just Cashflow again in the future.
The experience had been a 9.5 out of 10.
Would Stephen use the Just Cashflow solution again?
Yes, and Just Cashflow is an extremely professional and flexible organisation.