K2 scale European boundaries thanks to Ashley

Lincolnshire based recruitment experts K2 Engineers started trading in August 2005. Having tried other invoice finance companies and banks, K2 turned to small business invoice finance specialists Ashley Commercial Finance to factor their accounts.

With Ashleyís financial assistance Polish rotating equipment engineer Marek Gloc was placed into IMPaC Offshore Engineering GmbH in Hamburg, Germany with a temporary contract. Ashley enabled K2, who supply mainly offshore and onshore oil refineries, to supply a candidate for the first time to a German company. Initially Marek had a three-month contract but IMPaC were so impressed this has been extended by another three months.

K2 Engineers pay their contractors on a monthly basis and asked Ashley, who they found via an internet search, to factor their invoices, instead of using a bank. K2 raise the invoice which is signed off by IMPaC and Ashley pay the money to accounting experts Brooksonís, who sort out the tax implications of the wages and pay the workers directly.

K2 now employs eight staff, including two associates in Cyprus, and has a projected turnover of more than 250,000 for this year, which has consistently increased since start up, allowing K2 to take on more staff.

Kelly Moore, K2 Engineers Sales Director, said:

ìUsing invoice finance is an excellent way of boosting revenue and reducing risk and using Ashley has allowed us room for further expansion. Because we have Ashley, we can take on any number of contractors in the EU. Without Ashley we would have to rely on banks, who could stop our overdraft at any time. We send our invoice to Ashley, tell them how much to draw down and they pay ñ job done. It is a really smooth process and makes our finances hassle free. We have used other invoice finance companies and big banks but none of them stand up to scrutiny. Ashley is an excellent firm and we have a really good, close working relationship with them - the people there are very helpful and friendly.î

Managing Director of Ashley Commercial Finance, Jonathan Cranston, said:

ìMany companies are strangled by cash flow restrictions and need someone like ourselves to get things moving. Our services are flexible and well suited to small and growing businesses like K2 Engineers. They often have to wait many weeks to be paid by the customer, but have to pay contractors promptly. We can help with cash flow and fund a growing contractor book more effectively than an overdraft can. We offer the personal touch small businesses need in contrast to high street banks and provide a far more efficient and effective credit control service.î