Case Study - £180,000 Invoice discounting facility

£180,000 Invoice Discounting Facility for Software Development Company

The benefit of coming to Senate Money for help and advice in the invoice financing arena is that we know the marketplace well, and can find the best funder to suit any particular circumstance. In this case, we were able to recommend and set up a £180,000 Invoice Discounting Facility for a Software Development Company.

Why We Were Retained by the Client

The client had been considering invoice discounting for some time and had spoken to three companies in the past. They had decided not to enter into a facility with any of these companies as they found them to be inflexible when it came to taking the company’s unusual trading procedures into account.

 One of the main difficulties that had to be overcome was that the customer collected a deposit on their projects before doing any work. The factoring companies they had already spoken to had all indicated that these deposits could not be advanced upon and would not form part of an invoice factoring arrangement. This had led the client to believe that the answer would be the same if they approached more invoice financing companies and that factoring was not an option for them.

How we Successfully Overcame Our Client’s Difficulties With Invoice Factoring

After meeting with the directors of the company, we were able to satisfy them that we could work with their existing business model and sign-off procedures. The key was to persuade our chosen factoring company to adapt their product to allow the deposit payments as a part of the advance.

The outcome was that we were able to provide a £180,000 facility with a view to increasing it later in the year if needed. The company was highly impressed with our re-designed factoring product especially as we were willing to take the risk of non-payment from their debtors and look after their collections process. This now allows them to concentrate on their core business rather than chasing payments.

Contact Us if Your Business Needs Invoice Financing

All invoice factoring companies are not the same. Our knowledge of the market place, and our understanding of our client’s needs meant we were able to find a company which would give them what they needed, helping their business to grow.

If your business is in need of an invoice finance arrangement, whether invoice factoring or invoice discounting, contact us or call us on 01675 433878 for an initial chat.