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• 04 Jan

  Selective Invoice Finance For A Roofing Contractor

  

  Selective invoice finance was recently arranged by FundInvoice for a roofing contractor experiencing an upturn in new orders.

  Selective Invoice Finance For A Roofing Contractor

  In this recent case study, we were able to introduce our client, a roofer, to a selective invoice finance company that was able to provide a flexible financing facility.

  Funding A Roofer

  This particular roofing contractor was well established, but like many other roofers, they had been affected by the impact of COVID-19. However, now they were experiencing an upturn in the orders they were receiving and had large value orders that they needed financing against.

  Funding Selected Transactions With An Alternative Finance Company

  What made this case more interesting was that our client already had an existing selective invoice finance facility with another provider that was unable to provide the funding required in this case.

  Normally, in the receivables financing sector, funders want to be the only party involved with financing a particular business. However, there are some financiers that are prepared to finance particular transactions and work together with an existing receivables funder. In this particular case, the orders were able to be hived off and financed through the funder that we introduced.

  The Cash Flow Benefits Of Selective Receivables Funding

  One of the most important benefits of selective receivables funding is that it enables a company to pick and choose individual receivables to attract a prepayment. This means that the company is very much in control of the costs associated with running its facility. The prepayment means that they are not waiting for the customer to pay - the funder provides an advance against the transaction. This improves cash flow.

  Construction Sector Receivables Finance

  Another important aspect of this particular case is that it is an example of financing a business that operates within the construction sector. Often, mainstream invoice, finance companies will not be prepared to provide funding within the building sector. This is partly due to issues such as the contractual nature of the debt and payment delays. FundInvoice has within its panel of financiers a number of funders that are prepared to fund the construction sector and building businesses. This type of finance can be available against either invoices or applications for payment (a common alternative in the building sector).

  By Glenn Blackman