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• 10 Dec

  Business Rescue Finance Information

  Growth is closely linked to the use of factoring, however, this type of funding can also serve as business rescue finance if you find yourself in a difficult financial position.

  It may be that fast access to a cash injection is enough to save your company and put you back on the right track.

  SPEAK TO AN EXPERT

  Business Rescue Finance Information

  This is because qualification for this type of funding is not primarily based on your financial position or the value of assets that you can offer as security. It is based on the value of your outstanding sales ledger of unpaid receivables. Therefore, even a company that has CCJs is under creditor pressure (suppliers pressing you for payment), or that is subject to a CVA (Creditors Voluntary Arrangement) may be able to access factoring to unlock the value tied up in that sales ledger.

  If you are facing potential insolvency, you may be able to change the shape of your cash flow by using this type of funding.

  Also please see our free: Guide To Business Rescue for more business rescue finance information.

  Company Insolvencies Have Increased

  The Government's Insolvency Service reported a 14% increase in company insolvencies for the year 2023 when compared with the previous year. The main sectors contributing to this increase were: construction, wholesale & retail, accommodation & food, administrative support and professional & technical services. The construction sector contributed to the highest number of new company insolvencies.

  Some of those businesses may have been saved if they had access to factoring as business rescue finance. I would be interested to review those cases and understand how many of them we might have been able to help.

  Business Difficulties

  When you get into business difficulties, maybe before you reach an insolvent position, it can be caused by a variety of factors. This could include factors such as:

  • Losing one or more large customers.
  • Not getting paid by one or more debtors i.e. suffering a bad debt.
  • Increases in overheads.
  • Running short of cash.
  • Losing credit facilities, or having bank funding withdrawn e.g. an overdraft or credit cards.

  The funding from a factoring facility could improve your financial position, and even rescue your company. We also have other options, such as bad debt protection, that can protect you against a customer becoming insolvent and not paying you.

  By Glenn Blackman