Reflex sells video-conferencing equipment and plasma screens to the Ministry of Defence and the education and corporate markets. It has a turnover of Ј9m.
Six years ago the company decided to improve its cashflow by switching from a bank overdraft facility to invoice discounting provided by Eurofactor. This enables it to borrow up to 80% of each invoice as soon as it is generated, rather than waiting 40 days before it is paid.
Andy Brymer, managing director, said: “Invoice discounting works well for us because in the first quarter of the year our turnover is 50% more than it is in the rest of the year. We’re able to borrow more money when we need it and less when we don’t.
“We used to fund our business by traditional overdrafts, which meant we tended to have to ask for extra money in the busy periods and then pay for a facility we were not going to use in the quieter times.
