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• 13 Jun

  Factoring Facility Secured For An Expanding Business With Poor Credit History

  This case study explains how we arranged a factoring facility for an expanding business with a poor credit history, causing limitations in the credit granted by their suppliers.

  If you need similar help, either call us on 03330 113622 or:

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  This case study sets out below how we were able to help this client, who needed specialist broker support, find a provider who could assist.

  Case Study About A Factoring Facility Secured For An Expanding Business With Poor Credit History

  

  A company approached us, which was going through a rapid growth phase. Their turnover had increased significantly, pushing the limits of what they could fund internally. While business was booming, cash flow was under strain.

  There was a further complication. The business owner had a poor credit record, which was causing problems. This type of history can make trade suppliers wary and reluctant to offer credit terms, affecting the company’s ability to buy supplies to fulfil new orders.

  See this article about how Trade Credit works and what to do if it is limited.

  Finding A Supportive Funder

  Despite these challenges, we assisted them and found them supportive funders for their company that could provide invoice factoring.

  We introduced them to a selection of funders, and one independent finance company stood out from the rest. Not only did they provide a competitive factoring quote, but they also went above and beyond to support the client through several tough hurdles.

  Factoring providers are often very sympathetic to companies that are in difficulties or have experienced problems. Their financing is secured on the company's book debts, which means they are less concerned with weaknesses in the client company's financial situation. Getting a deal does not depend on a clean track record or economic strength.

  Help Organising Time To Pay With HMRC

  As part of the process, the provider helped the business owner organise their Time to Pay (TTP) arrangement with HMRC and to deal with other pressing creditors.

  See our related article about using invoice finance to buy a business.

  This proactive approach from the funder was essential in establishing the facility. With the factoring arrangement now live, the business is in a much stronger position to fund its growing order book and overcome its earlier difficulties.

  Getting Access To Similar Support

  We specialise in helping clients find funding solutions even when circumstances are far from straightforward. If you're facing similar issues and need help securing business finance, contact 03330 113622 for sympathetic support securing a factoring facility despite any poor credit history.

  By Glenn Blackman