A key player in the UK entertainments and gaming industry, Rubber Road supports major brands with their publishing, licensing, retail and distribution channels.
To most, Christmas is in December (yes, ok, we know that the seasonal gifts are hitting the shops six weeks earlier). Yet to Rubber Road Christmas is well and truly underway by March of each year!
Rubber Road hold the UK licensing contracts to produce Christmas jumper collections for the likes of Playstation and Star Wars Disney.
Yet Christmas doesn’t come early when it comes to payment by their clients. Good tidings and Christmas cheer come when the products hit the shops. However, their outgoings and supplier invoices come in months in advance. So they looked for a cash injection to help keep their books healthy, suppliers paid; all the while keeping their cash flow in the black, enabling them to take on other products and campaigns.
Here, Julie Morrison, Financial Controller, tells us both how and why she choose Calverton Finance to solve their cash flow problems through invoice discounting; allowing for growth and importantly, to agree better margins with suppliers.
“We needed a short term fix solution to manage our cash flow. We knew we had the business. We knew our clients were ‘good for the money’ but our production schedules see us taking a big hit in expenses and costs way before we are able to invoice for the end product”.
“I was aware of invoice discounting so I decided to look at this as a solution for Rubber Road.”
“In the first instance I got in touch with some big, high profile financing corporations thinking that bigger was better. But actually it wasn’t.”
“Bigger was slower. Bigger was complicated.”
“In the time it was taking to draw up agreements, our business needs had moved on and we found ourselves ‘back to the drawing’ board again, needing new agreements. It felt like ever decreasing circles and our organised planning for this was fast becoming an urgent need.”
“As a business we are lucky to be seeing big growth opportunities. Yet to seize these we needed short term cash injections. We didn’t want nor need full year requirements. And we certainly didn’t want to be paying for something we didn’t need for over half of the year. This was something the bigger providers were wanting to push. But that just wasn’t right for us. What they were offering wasn’t flexible enough, and what they could offer us was limited.”
“Instead we wanted something we could dip in and out of during our peak periods – 60% of our business is billed out in September through to December so our cash flow management is somewhat seasonal.”
“In stepped Calverton Finance. Calverton reacted quickly to our needs, recognising our growth potential. They prepared a tailor made solution that was exactly right for us. Not only did we feel they understood our business completely but they recognised things needed to move quickly.”
“Thus, within weeks we had signed our invoice discounting agreement with Calverton Finance.
“We have found that whilst Calverton are smaller in head count, they are bigger in service. We deal with one dedicated contact so every time we call we are talking to a person that knows who Rubber Road are. We are made to feel like people and not a number!”
“The service is second to none. The team are personable, available and actually, they are really nice. It’s personal with them, not just business.”
“Our business is gaming; it has a feel good factor. Working with the Calverton team echoes this.”
If you are would like more information on our flexible invoice finance facilities, please do get in touch and speak to our friendly team today on 01908 268888 or contact us here.