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• 27 Apr

  Invoice Lending For A Brewery With No Personal Guarantees Or Debenture

  

  Invoice lending on a selective basis, without the need to provide any personal guarantees, or a debenture, was an attractive option to one of our clients.

  Invoice Lending

  Using The Term Invoice Lending

  Strictly speaking it's incorrect to refer to it as "invoice lending", it is really selective invoice financing, but often customers will use terms that we don't expect.

  In this particular case, we were able to assist a brewery that were looking for some short term funding support.

  Financing A Brewery

  As often happens, this client had received a couple of large orders that would need to be financed. Often when a company receives a large order, out of the norm, it can place pressure on their cash flow to fund it.

  Funding Large Orders

  In this case, the client needed short term support to finance these large orders, but they liked the idea of a selective invoice finance facility, where they can pick and choose future invoices to have funded.

  No Personal Guarantees (PGs) And No Debenture

  The brewers also liked the fact that the funder that we introduced were prepared to take on their account without requiring a personal guarantee, and without taking a debenture over the assets of their company - no PGs and no debenture. This is unusual within our sector, as most invoice finance companies will require both PGs and a debenture over the assets of the company.

  Flexibility

  The combination of the flexibility of a selective facility, with no personal guarantees and no debenture, meant that the client was interested in funding further invoices, on an ongoing basis. This is a great example of how a company can approach us to fund large orders, and see the benefits of financing further invoices. Whilst this type of finance can be very helpful in smoothing out the cash flow requirement from an exceptional order, it can have a similar effect on day-to-day sales, meaning that clients are not waiting to be paid by their customers.

  By Glenn Blackman