New facility found for evolving business
Hilton-Baird Financial Solutions has helped a client to secure a new facility after moving outside of their previous lender’s risk profile.
The factoring facility our client chose initially worked well for both parties for quite some time. But after the volume of work carried out by the client for their top debtor unexpectedly rose, significantly increasing the concentration of debt – and with vital paperwork deemed important to the funder lacking and the nature of debt becoming increasingly contractual – the lender no longer felt able to continue supporting our mutual client.
Because businesses are always evolving, we put a lot of emphasis on our ongoing relationships with our clients. Our dedicated Client Manager stays in touch with our clients who wish to benefit from this service, which is part and parcel of becoming one of our valued clients. This is to ensure our clients continue to have the right funding in the event circumstances change for either party.
In this case, our client management process and open dialogue with our client meant we had insight into the evolution of the business and could foresee the changes ahead. This meant we could forewarn and forearm the client, and work closely with them to find a lender that was better suited to their revised customer profile.
Confidence to keep on growing
Mindful of the client’s sector and the contractual nature of the debt, we identified new options and considered which lenders would be willing to take their existing payment history and the strength of debtors into account, in order to generate the maximum amount of availability through a new facility.
The outgoing lender was very supportive, providing insight into systems and processes that needed improvement in order to help the client move forward in a positive way. It additionally allowed them to work closely with the incoming funder, so they would be confident and able to support the client’s ongoing growth.
In collaboration with all parties, a new and suitable facility began seamlessly within a few weeks.
We’re thrilled that our client now has the ability to confidently continue their growth strategy and that we were able to make the process as smooth as possible, ensuring that cash kept flowing throughout the process.
If you would like to review whether your existing facility is the most suitable for your business, Hilton-Baird offers a benchmarking service to evaluate whether switching could benefit you. Read more about it here, or contact a member of our expert team on 0800 9774833 or by requesting a call back.
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