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• 24 Oct

  Examples Where We Helped Companies Declined For Business Finance

  Previously I have posted about how we often help companies that have been declined for business Finance. These are a few examples of deals where we have been able to help in circumstances where the clients have not been able to secure the required business finance on their own.

  These are a few examples of the situations that we have been able to help with, each one has a link to the case study that explains the situation and how we were able to assist the company in question:

  • Single debtor construction finance -  in this particular case, we had both the problem of the customer being based within the construction sector, which is difficult for many finance companies to fund, and additionally they only had one customer which means that there was a prime debtor concentration of 100%. Many invoice finance companies are not prepared to handle a single debtor situation. However, in this particular case we were able to secure the funding required for our client and a credit limit on their debtor which was several times larger than they were able to find elsewhere.
  • Solution to a debtor credit limit restriction - in this case, our client was already with a factoring company and due to a deterioration in one of their large debtors, the credit limit for that debtor was removed. This seriously impacted their ability to generate sufficient funding. We were able to find them a solution to the problem by putting them in touch with a finance company that were prepared to consider taking a charge over a director’s property in order to provide the level of funding required against the debtor that had the issue.
  • Overcoming restrictions due to HMRC arrears - this client also had an existing factoring arrangement but they had got into arrears with HMRC. In such a situation, a company obviously needs to access as much cash as possible. However, the factoring company had taken the stance that they would restrict funding to the business, due to the HMRC arrears. This was causing them additional cash flow problems. We were able to find them an alternative factoring facility that reinstated their previous funding limit, provided an additional injection of working capital, and also achieved a cost saving on the price of their factoring facility.

  If you are having problems finding the finance that your company needs due to similar difficulties, please give FundInvoice a call and we will help you.

  By Glenn Blackman