Working Capital Loan for a Recruitment Agency Scaling Quickly
£200,000 · 24 months · 9.25% fixed. A specialist IT recruitment agency in Manchester had secured a major contract to supply contractors to a FTSE 250 business.
The Client
Specialist IT recruitment agency in Manchester
The Challenge
A specialist IT recruitment agency in Manchester had secured a major contract to supply contractors to a FTSE 250 business. The contract required the agency to fund contractor payroll weekly while receiving consolidated payment monthly - a working capital gap of approximately £180,000 per week at peak. Their existing bank declined to increase the overdraft.
Our Solution
Doulton arranged a £200,000 unsecured working capital loan on a 24-month term. The application was assessed on the strength of the signed contract rather than historical turnover - the contract value and counterparty quality made the lending decision straightforward for a specialist lender.
The Outcome
Contract fulfilled without cashflow interruption. The agency billed £2.4m in the first year of the contract. The working capital loan was repaid ahead of schedule at month eighteen from retained profits. Key highlights: Assessed on signed contract value - not historical turnover; FTSE 250 counterparty quality central to lending decision; Repaid ahead of schedule at month 18 from trading profits.