- 17 Nov
Case Study Showing How FundInvoice Helped A Welsh Driver Recruitment Business Secure Non Recourse Factoring
Following an enquiry from a temporary recruitment company based in Wales, FundInvoice helped them arrange an improved invoice finance facility. They specialise in supplying drivers to their clients, which means they rely heavily on consistent cash flow to pay temporary staff while awaiting invoice payment.
Case Study Showing How FundInvoice Helped A Welsh Driver Recruitment Business Secure Non-Recourse Factoring
Their existing factoring arrangement was becoming restrictive. The factoring company had set a low credit limit for one of the company’s main customers, limiting the amount of funding that could be released against invoices to that debtor. The directors were also concerned that their personal assets were at risk, as the incumbent factor required personal guarantees to support the facility.
FundInvoice stepped in to find a more suitable option. After reviewing the company’s situation, we sourced a non-recourse factoring facility with bad-debt protection. This meant that the new funder would protect the client against customer non-payment, removing a significant risk from their business.
No Personal Guarantees From Directors
Importantly, we identified a factoring company that could offer this facility without requiring personal guarantees from the directors. This ensured that the directors’ personal assets were no longer exposed to support their company’s funding. You can read more about this type of arrangement in our post on invoice finance without personal guarantees.
Increased Credit Limit On The Prime Debtor
The transfer from the existing factor to the new provider was completed. The new factor provided a more suitable credit limit for the prime debtor, allowing the company to access higher levels of funding than before. With the added benefit of bad-debt protection and no personal guarantees, the business can now trade with greater confidence and less financial risk.
Do You Need Similar Help?
If your company is facing similar restrictions or concerns about personal guarantees, invoice finance could provide the flexibility you need. FundInvoice can help you find the right provider for your business, whether you need recourse factoring (without protection against bad debts) or non-recourse (with that added protection).
For independent, free support, call us on 03330 113622 or request a quote search today, and we will research the market to find the most competitive and suitable funding options for your company.
For more information about invoice finance and how it works, you can visit the British Business Bank’s guide to invoice finance.
FAQ About This Case Study
What is non-recourse factoring?
Non-recourse factoring includes bad debt protection, which means the factor takes on the risk of a customer not paying, subject to agreed terms and limits. Read more about how the products compare.
Can I get factoring without personal guarantees?
Yes, some providers offer factoring without personal guarantees. FundInvoice can help you identify those funders and secure a facility suited to your needs.
What happens if I switch factoring companies?
Your new factor will usually manage the transition from your existing provider. FundInvoice can assist with the process to ensure a smooth handover. See our Guide To Moving Invoice Finance Companies.
Is there a cost for FundInvoice’s help?
No, FundInvoice does not charge you to use their service. Instead, we receive a commission from the provider if you decide to proceed. The service is independent and gives our customers access to a broad range of providers to help UK businesses find suitable invoice finance and factoring providers.
Case Study Showing How FundInvoice Helped A Welsh Driver Recruitment Business Secure Non Recourse Factoring
Call us: 03330 113622
