Courier set to deliver following investment
A YORKSHIRE-based courier firm is set to expand across the UK and increase turnover by 25% by the end of the year after securing a £150,000 funding facility.
The factoring facility is being provided by Lloyds TSB Commercial Finance.
Set up in 2007, Leeds-based KJM (UK) Ltd offers same-day delivery, technical courier, storage and logistics services, particularly to those in the IT industry.
KJM currently operates from a 6,000 sq ft warehouse but as demand for its services exceeded initial expectations, management required a cash flow facility to provide the capital needed to fund its expansion.
The factoring facility leverages the value of the firm’s sales ledger, boosting cash flow.
The funding package has allowed the company to move into a 9,000 sq ft warehouse in Leeds, as well as new premises in Trafford Park, Manchester.
KJM is also looking to open additional branches in Birmingham and London over the next two years and is now on track to double its turnover during the February 2012 accounting year.
Mike Dawson, co-director of KJM, said: “Over the past four years, business has snowballed – we’ve gone from having 20 vans to in excess of 60. This has enabled us to keep up with the changing requirements of our customers and we now offer storage, delivery and installation to our diverse range of clients, some of which are amongst the largest IT service providers in the country.
“In order to keep up with demand, we needed a cash flow boost and the factoring facility from Lloyds TSB Commercial Finance is perfect as the facility releases cash tied up in invoices. We are experiencing high demand and so the more we bill, the more cash is made available to push forward our expansion strategy.”
Peter Bould, regional manager at Lloyds TSB Commercial Finance, said: “The factoring facility is ideal for firms looking to expand as it grows in line with sales and as a result, KJM is in a strong position to implement its development strategy, which could create a minimum of 10 further jobs across the country.”
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