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• 15 May

  Solving A Single Debtor Credit Limit Issue For A Construction Company

  We have just been able to help a construction sector company solve a cash flow issue by getting funding against their single debtor. We were able to find them a credit limit that was several times larger than other funders were able to offer.

  I wrote recently about our success in helping customers with funding limit problems, and this case was a similar example of how we are able to overcome these kinds of problems for clients.

  Construction Sector Financing

  In this particular case our client was not an existing user of debtor finance and they operated within the construction sector. That is the first issue, only certain debtor finance companies will deal with financing the construction sector.

  Single Customer Financing

  The second issue was that they only hand one single customer. Again this will be a problem for many debtor finance companies as they prefer to have a spread of debts, to enhance their security, rather than a single debtor situation. The danger with one customer is that should anything happen to the debtor, the financier will not be able to recover any money that has been advanced. With a well spread debtor ledger, the financier will look to other customers to enable them to recover the finance advanced. However, once again, we deal with financiers that are prepared to help with single customer situations.

  Finding A Large Enough Debtor Credit Limit

  The final issue was that the particular customer was not supporting a large enough credit limit from many of the financiers that we spoke to, that were able to overcome the other two issues. Eventually, our search service was able to find our client a finance company that could offer them a credit limit on their debtor, that would meet their needs. This was two and a half times higher than the largest limit we found anyone else able to offer.

  Get Finance Quickly

  Many customers need to get finance quickly, in this particualr case, we were able to complete the whole process from first contact, to release of funds in just over a week.

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  If you need help getting access to finance why not discuss your circumstances with us, in complete confidence. Just call Sean on: 03330 113622.

  By Glenn Blackman