IGF are now the only source of funding for our business, and it’s a relationship that suits us down to the ground. 
Maze Communications Ltd
Ten years of Success – IGF and Maze
Maze Communications is an internet and design agency, established in 1996 and based in Chipstead, Kent, providing clients across a range of industry sectors with innovative online and offline marketing solutions.
The Challenge
When Maze started trading ten years ago, the main challenges it faced were a lack of capital to kick-start the business; a requirement for financial flexibility and good cashflow to grow the business and the management team wanted to remove the burden and cost of chasing invoices.
One of the most common problems facing SMEs operating in the creative industry is cashflow. Many find themselves financing the work they do on behalf of their clients upfront, and are then left waiting for payment after the project is complete. This was one of the biggest obstacles facing Maze Communications when it first attempted to start trading. Like all start-ups it needed to raise capital quickly to get the business off the ground. The clients were there, but the company was short of funds required to get the ball rolling, and was unable to convince high street banks to lend it money as well as provide a service that would keep cashflow solid as the business moved forward. Furthermore many of the services Maze provides are outsourced, so the need for good cashflow was essential right from the start.
Maze wanted find a commercial finance company with a good reputation, and one which had a local office to ensure there was a personal touch to the service provided. It also wanted to develop a long term relationship that would not only set the business up, but drive the financial aspects of the company for many years to come. Finally, it wanted to ensure cashflow was never a major concern and that funds were always available on time to pay suppliers and invest in the business.
To address these challenges, Maze turned to IGF, one of the leading independent commercial finance companies in the UK.
Paul Trill, Managing Director at Maze, explained: “With many websites taking three to four months to complete from concept to going live, and then customers taking at least two months to settle invoices, our cashflow would be restricted if we didn’t have the services provided by IGF. This would hold back our ability to invest in the latest technology and employ new staff to grow the business - but thankfully we’ve had IGF on board since we started and our ten-year relationship has been fantastic for business growth.”
He added:
“IGF were recommended to us by Business Banking Consultants. We explained our dilemma to them and they advised us that we should meet with our existing bank to see what finance options they could offer and also to get in touch with IGF, which they knew had an excellent reputation.”
The IGF Solution
IGF understands the issues and goals facing a company like Maze – both long and short term – and offered the most flexible and cost-effective package, tailored to meet the company’s business and cashflow aims. Through factoring, IGF enables Maze to draw down cash as and when required - prior to invoice settlement dates - giving it greater flexibility in paying its suppliers as well having cash in the bank.
Results
The impact of the factoring services supplied by IGF resulted in the reduction in the company’s debtor days, which fell from 56 days when it appointed IGF, to 39 days – a significant improvement for a small organisation.
Ruth Salhus, Client Manager at IGF said:
“The problems that they Maze faced as a start-up organisation, and as a growing company, are quite common for SMEs. Raising finance effectively, and then using cashflow freed up through a factoring facility can be vital to any new business or a growth company.”
She continues to explain:
“Maze was no exception and we have been with them from the start, so we’ve seen how our services have helped to shape the business into a thriving enterprise. IGF’s services have provided a platform, in terms of flexibility and ability to manoeuvre the business, and one that can constantly be built upon through IGF’s services.”
Controlling credit
Furthermore IGF’s services have not only improved cashflow, but also removed the headache of recruiting and retaining a credit control function. IGF chases up and collects invoices on behalf of Maze, releasing it from that particular burden and offering a way of moving resources into core business functions.
Paul Trill explained further:
“The costs involved of hiring IGF for factoring our invoices are significantly below the cost of appointing an in-house credit controller. It has also taken away the worry of managing a finance function which entails holiday pay, time off sick and so on, let alone taking up important space in our offices.”
In summary
Finance solutions for Maze have been tailored by IGF, initially giving the company the financial lift it required to begin trading and then continuing to work in partnership with IGF over the last ten years. The relationship built with IGF has benefited Maze greatly, enabling it to plan and co-ordinate its growth strategy swiftly and efficiently. Maze now houses a team of ten and is looking to expand its services into new areas as it seeks to increase revenues.
Benefits experienced by Maze Communication through IGF services:
- Locally-based service
- Ease of contact/accessibility
- Cashflow problems resolved through guaranteed money each month, enabling business flexibility and continuity
- Service with a personal touch
- Cost-effective finance
- Tailored service developed in line with Maze’s business goals and strategy
- Removed administrative challenge and cost burden of invoice collection