£700,000 factoring facility secured for wholesale company
An importer and wholesaler of fibreglass engineering products has secured a new £700,000 factoring facility with the help of our team.
When their previous funder was no longer able to support them, our client needed a replacement funding solution that would provide the service and facility structure they required to keep cash flowing and support the business.
With the aid of our team’s introductions to suitable lenders, our client was able to secure a recourse factoring facility that enabled them to continue trading with the knowledge that their cash flow was supported.
Back on track
With over 20 years’ trading history, this London-based company had faced a drop in sales over the last few years. Due to the rigorous testing required in engineering and construction, their products have a long lead time, which contributed to recent losses.
Despite this, the company was coming through this difficult period thanks to several changes they made to address it.
They took steps such as moving to remote work and reducing man hours to cut costs, as well as reducing overheads by delivering goods direct to their clients. With their order book increasing, however, cash was increasingly being tied up in unpaid invoices as a result of trading on credit terms.
By listening to and understanding the challenges and situation facing the business, and by utilising our knowledge of the invoice finance market and lenders’ appetites, our team was able to introduce suitable funders who would be able to support the company.
After choosing the funder they felt was right for them, the new funding facility means they can access funding against the value of unpaid invoices ahead of customers paying, to keep cash flowing and available to reinvest.
To find out more about factoring and how we could help your business to identify the most suitable funding facility, call our team of experts on 0800 9774833 or request a call back.
