Call us: 03330 113622

Blog home
Categories
Popular Posts
Recent Posts
Archive

• 10 Aug

  Factoring Successfully Arranged For Ambulance Services Patient Transport

  

  We have been able to assist another transport company that provides patient transport services. We helped them find a factoring service from an independent factoring company, in order to provide the working capital that they need to support the growth and expansion of the business.

  Ambulance Services - Patient Transport

  The company provides both secure and non-secure patient transport services to local authorities, police, the justice system, the NHS and the private sector. They specialise in providing ambulance services for patients who have underlying mental health issues.

  Growth, Expansion And Working Capital

  As with most other businesses that grant credit to customers, there will be a delay between the provision of services, and payment of the debt by the relevant authority or private company. With a transportation factoring company putting a facility in place, their cash flow is dramatically accelerated as prepayments are immediately provided against invoices raised on credit terms.

  The provision of ambulance services lends itself well to funding against invoices. The debtors involved also tend to be Government organisations such as local authorities or the NHS.

  Releasing Prepayments Against Ambulance Transport Services

  By releasing prepayments against invoices as they arise, it creates a cash injection of working capital for a growing business. That cash can immediately be used to pay staff, suppliers and other typical significant costs within the transport sector such as fuel.
  
  Factoring services work particularly well when a business is growing as the business will often need access to as much cash as they can, in order to fund their expansion. The other significant benefit that factoring offers a growing company is that the amount of funding will increase in direct proportion to the amount of invoicing that is raised. This means that as a company expands, and its turnover grows, so does the amount of working capital released by the factoring arrangement.
  
  The funding rises hand-in-hand with the expansion of the business, such that it keeps pace with its working capital requirements to continue on a growth trajectory. Our research has shown that there is a strong link between becoming a high-growth business and utilising a factoring service to provide working capital.

  By Glenn Blackman