Factoring case study

Background
Our client a training and consultancy business with a mixed client base some of which were notoriously late payers.

Problem/Opportunity
Our client had already ascertained that factoring would help improve the business cashflow and assist with reinvestment and expansion. However their bank had declined their application for a factoring service at the last minute saying they were unhappy with the historical trading record.

The Solution
We gathered information on the background to the previous trading issues their bank had been concerned about and tried to demonstrate in our submissions(to a number of more flexible factoring companies) that they were unlikley to happen again. This honesty and openness was successful as we were able to secure factoring facilities with two companies.

Key Benefit
Having an intermediary able to take the time to explain the background to previous trading problems in a clear way and the time to present and negotiate with a number of providers meant our client was able to secure the most appropriate facility.
Our client no longer has stressful days chasing invoice debtors or sleepless nights worrying about cash-flow!

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