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• 17 Aug

  Large Contract Funding For Haulage

  

  Another case where we were able to assist a haulage company that had landed a large contract with one particular debtor. The contract will enable them to rapidly grow their turnover, but they needed finance to fund fulfilment of the contract.

  Funding A Large Contract For A Haulage Company

  The haulage company was a new startup that had purchased a few trucks and secured their first customer. They had only been trading for a few months but had managed to increase the orders from their customer substantially. This meant that they needed some finance to enable them to cope with this large increase in sales volume.

  Funding Orders With Invoice Finance

  Invoice finance is a great way of funding rapidly growing turnover. The finance is released against the invoices that the business raises and hence it increases as the value of outstanding invoices rises. In this way, it is an ideal way to finance rapid expansion when other types of finance can struggle to keep up.

  Typically, providing single-debtor invoice finance can be an issue for some invoice finance companies. Additionally, the prime mover also had some prior credit history problems which would have made this a difficult deal for some providers. We were able to secure them a factoring facility with an independent financier, that we're able to assist.

  Their new transport factoring facility should place them in a position to expand, without feeling the pressure on their cash flow. As they raise new invoices, so they will receive finance against those sales.

  Speed Of Delivery

  The other interesting aspect of this case was the speed of delivery. The agreements had been issued and signed just 5 days after initial contact. This isn't the fastest we have delivered a facility (7 hours is our record!) but it compares very well with other providers.

  Our hope is that this client will go on to grow their turnover and expand their customer base by taking on additional customers. They will be safe in the knowledge that they no longer have to wait for their invoices to be settled before they can access the cash from those sales.

  By Glenn Blackman