Arcinova, a UK-based research and development organisation providing services to the pharmaceutical industry, has agreed an invoice finance deal with Siemens Financial Services (SFS).
In the agreement up to 90% of the approved invoice total will be immediately advanced by SFS to Arcinova. The remaining 10% is paid once its customer settles the balance.
Pulin Trivedi, head of sales for SFS in the northeast, said: “Every business is different and it’s not sufficient to apply a ‘one size fits all’ approach to invoice finance. Arcinova, for example, operates in a hugely regulated industry, so we needed to familiarise ourselves with the audit trails required and adjust our processes accordingly. We’re excited to support Arcinova in the next stage of its growth journey.”
Arcinova’s services include drug product manufacture and analysis, testing and bioanalysis to understand a drug’s impact. The company is headquartered in Alnwick, Northumberland.
Paul Ryan, finance director at Arcinova explains: “As our growth accelerated we needed to free up money to invest in technology and staff. Invoice finance seemed like the most logical solution to achieve this.”
“We knew of Siemens by reputation and were aware they had experience in the healthcare sector. This helped them to understand our company and offering. We’re not selling products but services; SFS accounted for that and tailored the invoice discounting arrangement accordingly.
“We were delighted that a long-established financier like Siemens was keen to work with a new business like ours. They recognised that although the company is relatively young, we’re growing rapidly and have an impressive customer base.”
In June the UK chief executive of manufacturer Siemens has warned that the German company may limit its investment in the UK as a result of uncertainty over the country’s departure from the European Union, especially in the event of a ‘no deal’ departure.