Ultimate Finance has provided a £425,000 funding arrangement to Edgar Stewart.

The Edinburgh-based recruitment specialist is looking to further expand and diversify following the deal.

The firm, which has more than trebled its headcount in the last year via its three recruitment brands, has now expanded into temporary placements after securing the invoice finance facility provided by the Scottish office of Ultimate Finance.

Over the past 12 months Edgar Stewart has increased turnover by 300% to nearly £3 million after launching water and energy spin-out ‘Cyrus’.

The firm is now focused on growing the contract business to meet the growing demand for Cyrus’s services and provide continuity in revenue streams, enabling the firm to plan ahead and fuel growth. Unlike permanent positions which provide a one-off fee, income from temporary placements is ongoing throughout the length of the contract.

The invoice finance facility was arranged to cover the gap between Edgar Stewart paying the placements on a predominantly weekly basis and receiving payment from client invoices, which can take 30 days or more, and help to boost cash flow.

Sara Zorriasatein, founding director of Cyrus, which launched earlier this year as part of Edgar Stewart, said: “The invoice finance facility has provided us with the flexibility to further develop the service we are able to provide to our clients.

“As well as providing temporary cover during our clients’ busy spells and support them with specific projects, we can now also provide staff for holiday cover, maternity leave and long term sickness.

“The benefit to us is that we can plan business growth better, as we are able to project fee income months in advance.”

Lynsey Innes of Ultimate Finance said: “We have worked with many recruitment companies, so we understand the business model and requirements when working in the temporary contract market.

“Edgar Stewart has an excellent business which was being held back because of the funding gap. With a knowledgeable and committed management team and blue chip clients I could quickly see the potential for the business to grow and therefore had no hesitation in providing the invoice finance facility.”