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• 30 Nov

  Replacement Invoice Finance When A Bank Terminated The Existing Facility

  

  Replacement invoice discounting was required for one of our clients who had been told that their bank wished to terminate their facility. This is commonly referred to as a "manage away" in our sector. When one funder chooses to manage a client away to an alternative financier.

  Notice Of Termination From A Bank Owned Invoice Discounter

  FundInvoice were introduced to a company of security consultants that needed help after their high-street bank-owned invoice discounting company told them they wanted to terminate their existing facility.

  Replacement CID

  The client had a confidential invoice discounting (often called CID) facility. This means that they receive funding against their sales invoice, but they retain control of their sales ledger collections. By undertaking the credit control themselves, they retain all contact with their customers who are unaware of the facility.

  Security Staff

  Our client was involved with the provision of security staff for events. A sector that is well suited to funding via receivables financing.

  The issue was that despite turning over several million pounds each year, the business had seen a drop in turnover and a downturn in its financial performance during the pandemic. This is of course a common problem that numerous businesses have faced over such a difficult trading period. Unfortunately, in this case, the bank wanted the client to find a replacement CID facility.

  Replacement Confidential Invoice Discounting

  We were able to find our client a replacement confidential invoice discounting facility with an alternative bank-owned invoice discounter. They were happy to support this client and help them get their business back on track with the benefit of cash flow financing.

  This is a good example of how we can often help clients that have been declined for a facility elsewhere. In fact, we specialise in supporting companies in such situations. Prospects commonly expect that all funders will take the same view, but this is not the case - there can be vast differences between the terms, prices and security requirements of different discounters.

  For further help with termination, please see our Guide To Receivables Finance Termination.

  By Glenn Blackman