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Major's grand designs for growth.

Major's grand designs for growth

Major Designs is a South Wales based company with over 50 years’ experience in providing a range of engineering services to industry.

Like many SME’s Major had the ambition and confidence to grow their business, however their continued growth and demand for products put a strain on the business’s working capital.

Emma Powell, Finance Director for Major Designs, recalls how the business sought a funding solution that would give them the necessary cashflow that was needed to help them grow, whilst also being flexible and good value.

Emma said: “The banking community displayed little practical appetite for supporting our development strategy – despite us selling relatively high value product into a blue chip corporate customer base. Personal recommendation then quickly led us to the local Hitachi Capital Business Development Manager and things progressed quickly from there.

Emma continued: “It was very clear from exploratory conversations that we were dealing with a professional, proactive team who were responsive to our specific needs. Whilst rigorous in their challenge and research of Major, Hitachi Capital staff proved to be easy people to do business with, displaying a clear understanding of us – not simply trying to shoe horn us into a one size fits all solution”.

Having understood Major’s financial objectives and current challenges, HCIF were able to quickly match their business needs to a CHOCCS facility – Customer Handles Own Credit Control. HCIF’s CHOCCS facility works in the same way as factoring; it allows businesses to receive up to 85% of the value of their invoice within 24 hours of the invoice being raised instead of having to wait the typical 30-90 days for your customers to pay, thereby freeing up their cash flow. Major however were keen to maintain their own credit control, which a CHOCCS facility enabled them to do.

For Major this meant that they could maintain and develop the strong relationships that they’d already built with their customers whilst still benefiting from a Factoring facility. It also meant that as the company turnover grew, so did their funding line, giving them the flexibility they needed to grow without having to continually negotiate new terms.

Emma continued: “The Hitachi Capital factoring facility seemed a sound all round fit for us – offering flexible levels of funding, relatively light touch audit and administration and good value.

“Through the four years of our relationship with Hitachi Capital Invoice Finance, we have grown sales by over 50%. This growth would have been constrained had funding not been available through the Hitachi Capital facility.

“Both the Hitachi Capital and Major team have worked hard at ensuring that there is a strong working relationship with a deep understanding of our customers and their behaviours – so there are no surprises for any party”.

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