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• 19 Dec

  Case Study Factoring One Invoice For IT Software

  This case study is about factoring one invoice for IT software services to help pay staff payroll with the option to factor more invoices in the future.

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  This is how we were able to help this UK company pay staff payroll whilst supplying IT software services to one significant debtor.

  Case Study Factoring One Invoice For IT Software Services

  FundInvoice assisted an IT software company in finding a facility that would support factoring 1 invoice to enable them to pay staff payroll for the month.

  IT software work can be ongoing in nature which can present problems for many factoring companies. However, there are some providers that will fund IT software invoices and we connected this prospect with one such provider.

  Significant Debtor Delayed Payment

  In this case, only one significant debtor was involved. The outstanding invoice was substantial but there was going to be a few weeks delay in getting the invoice paid. This created a payment delay for our client that needed to be overcome.

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  See this article from the British Business Bank about How To Deal With Late Payments.

  Pay Staff Payroll

  The challenge for our client was that they needed to pay staff payroll for the month. This meant they needed the funds from this one invoice in their bank account despite the invoice not having been paid by their customer. Selective factoring was identified as a great fit with this need and a provider that FundInvoice have worked with successfully in the past was introduced to our client.

  Factoring One Invoice In 3 Days

  The factoring facility for the one invoice was put in place in just 3 days from initial contact by our client to cash being paid into their bank account.

  This is fast but not quite our record which was just 7 hours from enquiry to funds being paid! However, this met our client's timeframe to get the funds to pay staff payroll for the month.

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  Find out more about Selective Or Spot Factoring.

  The Option To Factor More Invoices

  In this case, our client only needed to factor one invoice. However, one great advantage of the arrangement that has been put in place is that the IT software company has the option to factor more invoices if they choose. The facility is now in place and can be activated again if they need to factor 1 invoice or have more invoices they want liquidated quickly. Future funding can be accessed very quickly as the facility paperwork is now all in place.

  Factoring IT software invoices will be available to them on an ongoing basis should their cash flow require another boost.

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  Read more general information about Invoice Factoring.

  Can We Help You?

  If you are in a similar situation, perhaps you are considering factoring one invoice, or need to pay staff payroll at short notice, please get in touch with FundInvoice on 03330 113622 for support.

  By Glenn Blackman