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• 02 Jan

  How Invoice Finance Helped A UK Electrical Contractor Restore Cash Flow

  Restoring reliable cash flow can be difficult for businesses that have survived disruption but lost momentum along the way. This case study shows how FundInvoice helped a UK electrical contractor secure invoice finance when a traditional provider could not support them.

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  How Invoice Finance Helped A UK Electrical Contractor Restore Cash Flow

  

  The client is a UK-based electrical contractor working on commercial projects. Like many firms in the sector, their work involved contractual customer debts, with payment terms that strained day-to-day cash flow.

  The business had also faced challenges in recent years. COVID-related disruption led to trading losses, and a failed new venture further drained working capital. Although the company survived, it was left operating on a hand-to-mouth basis, relying on incoming payments to cover immediate costs.

  The Initial Problem for The Electrical Contractor

  The enquiry reached FundInvoice via another finance provider that was unable to assist. Due to the contractual nature of the client’s customer debts, the other funder could not offer a suitable invoice finance solution.

  This left the business in a difficult position. Without access to working capital, growth opportunities were limited, supplier payments were tight, and management time was consumed by cash-flow concerns rather than running the business.

  How FundInvoice Helped

  FundInvoice introduced the client to an independent provider that took a fresh view of the situation. Rather than dismissing the enquiry, they assessed the business's underlying strength, the quality of the debtor book, and the client’s need for confidentiality and control.

  They agreed that the business would benefit from a confidential invoice finance facility that allowed them to retain responsibility for their own credit control. This approach suited both the contractual nature of their invoices and the client’s preference to manage customer relationships directly.

  The Funding Solution

  We introduced the client to an independent invoice finance company willing to support the structure of their customer contracts. The agreed facility provided flexible funding against invoices while remaining confidential to customers.

  This form of invoice finance enabled the business to unlock cash tied up in unpaid invoices without changing its client interactions. More details on how these facilities work are available on our dedicated Invoice Finance page.

  The Outcome For The Client

  The new facility is expected to provide a vital boost to working capital, easing short-term pressure and enabling the business to move away from reactive cash management. With improved liquidity, the company can plan, stabilise operations, and focus on rebuilding after several challenging years.

  Improving cash flow resilience is a key theme highlighted by organisations such as the British Business Bank, particularly for businesses recovering from economic shocks.

  How FundInvoice Supports Businesses Like This

  This case demonstrates the value of independent expert support. When one provider was unable to help, FundInvoice identified an alternative solution tailored to the client’s circumstances.

  If your business is struggling with cash flow or has been declined by a lender, you may still have options. FundInvoice offers free, independent support and can help you compare suitable facilities. You can also review your position using our Cash Flow Health Check and Fix Kit.

  To explore whether invoice finance could work for your business, request a free, no-obligation quote from FundInvoice today or call us on 03330 113622 for a discussion in confidence.

  FAQ About This Case Study

  Why was the original provider unable to help?

  The provider could not support the contractual nature of the client’s customer debts because the client did not meet its funding criteria. This is common with many mainstream providers, but some alternative providers will accept and fund against contractual debts.

  What type of invoice finance was arranged?

  A confidential invoice finance facility that allowed the client to manage their own credit control.

  Is invoice finance suitable after trading losses?

  In many cases, yes, especially where the business has a stable debtor book and needs working capital support rather than long-term borrowing.

  Does FundInvoice charge for its service?

  No, FundInvoice doesn't charge its client directly. It provides independent, free support to help UK businesses find suitable invoice finance solutions and receives a commission from the funder if the client proceeds, as in this electrical contractor's case.

  By Glenn Blackman