- 18 January 2016
- Posted by: Lucinda
- Categories: Invoice Discounting, Invoice Finance, Success Story, Wholesalers
Invoice Finance – fast funding in 7 working days
This newly established company was incorporated in December 2015, after a long-established food wholesale business ceased to trade due to lack of management and legacy debt. Two savvy businessmen saw an opportunity and took over the client base, the lease on the building and – importantly- employed the existing staff, saving 12 jobs.
The directors had to act quickly to ensure continuity of supply to their loyal customer base. They sourced new suppliers, expanded the product range and negotiated better pricing. Within two weeks of trading, their turnover had doubled, compared to the previous month, and customers began ordering more stock in the run-up to Christmas. Although the directors had injected money into the business, they identified the need for Invoice Discounting, to ensure there was sufficient working capital and to minimise cashflow pressures. However, they were racing against the clock, as they had the first wages bill to pay by December 31st.
We met with the directors on December 17th and introduced an independent Invoice Finance company who was willing to commit to the tight timeline. A survey was arranged for December 21st, and legal documents were couriered to the directors the following day. On December 30th, the directors signed the legal paperwork at the funders offices. The following day the Invoice Finance company transferred a lump sum of cash into the company bank account – just in time to pay the wages.
“This alternative funder pulled out all the stops to ensure that we had money by the deadline. They even delayed their payment run by 45 minutes to facilitate the first payment to us – that’s some service.”