Case Studies
€330K Extra Funding Through Single Debtor Finance
Clancy got us a much better deal that really allowed us to get maximum cash from our debtors ledger.
The Outcome
- €480K available against the debtor ledger
- Additional €330K funds released
- Debtors funded at 80% prepayment
- Key customer credit-approved
- Bad debt protection included
- Additional working capital headroom
1.
Summary
This telesales business had €600K outstanding from customers, but its existing invoice discounting facility allowed just €150K to be drawn due to its reliance on one key customer, which accounted for 90% of turnover. CBF introduced a specialist invoice finance funder that credit-approved the customer and agreed to fund the entire ledger at 80% prepayment. This increased available funding to €480K, releasing an additional €330K in working capital.
2.
Challenge
The business had secured a contract with a blue-chip customer, but the funding available against its invoices was restricted by the lender’s concentration cap. Although €600K was owed, the existing facility allowed only €150K to be drawn because one customer accounted for 90% of turnover. The business needed a funder prepared to assess the key debtor on its own creditworthiness rather than apply a standard concentration limit.
3.
Approach
CBF identified a specialist invoice finance funder with a more flexible approach to debtor concentration and introduced the business. The funder credit-checked the key customer and agreed to finance the entire debtor ledger at 80% prepayment, subject to an insured credit limit, rather than applying the existing concentration cap. The new invoice finance facility also included bad debt protection, providing additional security alongside the increased working capital.
