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• 17 Jun

  Which Invoice Finance Companies Help People With Bust Businesses

  

  Business doesn't always go to plan, which is why you may be trying to find out which invoice finance companies help people with bust businesses. There is good news - there are options.

  If you have previous business failures it may feel like the end of the line, at least as far as securing business credit goes. That is not necessarily the case. There are invoice finance companies, on our panel, that will offer factoring to people that have previous failed companies.

  SEEK HELP NOW

  Which Invoice Finance Companies Help People With Bust Businesses?

  We have just been able to help one of our clients answer this question. The company in question originally contacted us over a year ago. At that time we approached a range of invoice finance and factoring companies on their behalf. Unfortunately, there were no funders that were prepared to help them.

  Helping A Non-Homeowner Foreign National

  The business was straightforward, a recruiter supplying nurses and care staff needing funding to grow. However, the prime mover had previous bust businesses that had also used a factoring company. He was also a non-homeowner, and a foreign national i.e. not a British citizen. These issues, combined with the small size of the company had mean that they were unable to attract a funder.

  Newsletters Work

  Over a year later, they spotted an article in one of our business funding newsletters, and got back in touch. As well as proving that sending out a newsletter works, we were able to take another look at the market for them.

  Factoring Companies That Help Despite Prior Failures

  During the year, we had added additional funders to our panel, included one company that specialise in offering factoring to difficult cases. They do this by focusing on the quality of the debt, rather than the financial situation of the directors of the company. This enables them to fund invoices where other companies will not. Business failure is far more common than you might imagine. This article suggest that as many as 1 in 5 businesses fail each year - so this is a common problem.

  We were able to arrange for this funder to put in place a recourse factoring facility that will support our client's growth aspirations. They had managed to grow over the last year, despite not having a facility. Therefore, their new factoring facility should accelerate their growth even further. Factoring releases cash immediately invoices are raised. Recruitment companies often need this additional liquidity to meet their payroll obligations (hence the high take-up of factoring amongst recruitment companies).

  Factoring If You Have Prior Company Failures

  If you have prior company failures, and you are struggling to secure a factoring arrangement for your new business, we are likely to be able to help. Please contact Sean on: 03330 113622 to discuss your options in confidence.

  Struggling Now?

  If your current business is struggling now, take a look at our turnaround guide. It may provide some useful guidance to help rescue your company. Factoring might be one part of that solution.

  By Glenn Blackman