• Factoring With An HMRC Time To Pay (TTP) Arrangement

    Factoring with an HMRC Time To Pay (TTP) Arrangement.This is an example of a UK SME company that we were recently able to help find the funding to support their projected growth. In this case, the company was a small driver recruitment company within the temporary recruitment sector, and they were looking to grow their turnover substantially to a single customer.

    Use of invoice funding within the temporary labour sector is very common, and it is the sector where there is the highest takeup of this type of business finance.

    Overdraft Restricting Growth

    The company already had an overdraft in place but the small limit was proving restrictive and they needed further working capital in order to support their growth plans.

    This is often a situation that we come across, the amount of funding available via a traditional bank overdraft is not necessarily sufficient to support a small, rapidly growing business that may not have enough assets, outside of the debtor book, to support high levels of lending in a traditional bank format.

    The benefit with a factoring facility is that it grows in line with the turnover of the business, as the amount of funding released is based on the size of the sales ledger, rather than the other assets that are available. An overdraft normally has a fixed facility limit that doesn't change without a further application.

    Declined By Factoring Companies

    In this particular case, this customer had already been declined by several other providers, that he had approached directly, due to various issues that made this a more complicated proposition.

    Firstly, they were dealing with a single debtor, which is something that not all invoice finance companies are prepared to entertain. Secondly, the prime mover was not a homeowner. Homeownership has become an increasingly common requirement among some of the invoice funders, although not all providers take the same approach.

    HMRC Time To Pay (TTP) Arrangement

    Lastly, the business had a "Time To Pay" arrangement (TTP) in place with HMRC, in respect of some outstanding VAT. A time to pay arrangement means that HMRC have agreed that the company can pay off its VAT arrears over a set period of time, via regular more manageable payments. This is of course good news to the business, but can sometimes be perceived negatively by external lenders. Therefore we needed to find them a provider that would take a sympathetic view of their situation. We were able to find them a small independent factoring company that were prepared to offer a facility that would allow them to meet their growth projections.

    This is an example of how we can often help customers that have been declined when they approached factoring companies, and other lenders themselves.

    Share with:

Related articles

  • Read More

    Do You Want An Improved Factoring Deal?

    In many cases, when a company is using invoice finance are not completely satisfied with the service that they are receiving, they stay put in order to avoid any hassle associated with moving. However, there may be significant benefits to moving.Read our Guide To Moving Factors.This recent case study was a fantastic example of the numerous benefits that you can enjoy if you decide to search the...

  • Read More

    Invoice Finance Based In Southern Ireland (Eire - Republic Of Ireland)

    We dealt with an interesting case recently where the location of the prospect was a key issue.We were asked to assist a staff recruitment company that provided temporary contractors to various parts of mainland Europe.The key issue with this particular prospect was that they were due to move their offices to Southern Ireland (also sometimes called Eire or the Republic of Ireland) - so they...

  • Read More

    Funding For Accountants With Poor Sales Ledger Ageing

    We have just been able to help a company of accountants find a factoring facility after their existing provider sought to terminate their facility due to the ageing of their sales ledger. So if your factoring company want to terminate your facility, don't panic and get in touch to see how we can help you.CONTACT FUNDINVOICEAccountants are often paid late, it is an issue that seems to dog the...

  • Read More

    Replace Your Cancelled Invoice Finance Facility

    We have just been able to help a small steel fabrication business that were are using a selective invoice finance company, that wanted to cancel their invoice financing facility.The business deals with a number of construction sector customers, and hence a lot of their sales are billed via applications for payment, rather than invoices. The use of applications for payment, which is commonplace in...

  • Read More

    30K Business Loan For A Vending Machine Supplier.

    Vending machines is one of the diverse sectors that we have been able to assist recently. We recently helped a supplier of vending machines arrange a long term business loan. The loan was for £30,000 over a long term, which will provide a significant capital injection for their company.MORE INFORMATION ON BUSINESS LOANSWhilst this was a relatively modest loan, we are able to help arrange much...

  • Read More

    Diverse Trades That We Have Found Funding

    Whilst looking through recent deals that we have completed to find a few for case studies that I can add to our website, it struck me what a diverse range of different trades, and industry sectors, we have arranged funding for recently.The variety of types of business finance that we can arrange for companies, means that there are options whatever your industry sector.These are just a few...

  • Read More

    Overcoming Constant Changes Of Client Manager

    Service problems are rare in the invoice finance sector, but when they do arise, we have had some success helping clients solve service problems.REQUEST A CALL IN CONFIDENCEWe have just assisted a client who was using a bank owned invoice finance company, but they had suffered continual staff changes. After having the same Client Manager, the individual - often called a Relationship Manager - for...

  • Read More

    Savings On Factoring For A Recruitment Company

    Interesting recent case where a potential cost saving has been identified for a medium sized recruitment company, currently using non recourse factoring.The prospect was using a non recourse factoring service (which can have its benefits), from a large provider, but they were seeking a cost reduction exercise, and they wanted a better service. They felt that the provider was no longer keen on...

  • Read More

    Credit Control For A Small Construction Estimating Business

    We have just completed a credit control only facility for an estimating business that handles:DISCUSS A CREDIT CONTROL QUOTEThis firm of estimators were originally with a large high street bank, who have an invoice finance arm, but as the bank have withdrawn their debtor protection this client needed to look for a new provider. The facility that they had received from the bank was factoring but...

  • Read More

    Invoice Discounting For An Electric Bicycle Distributor

    Electric bicycles, or e-bikes, are a fast growing market, as many people seeking to live a greener life and replace their journey to work in a petrol or diesel powered car, with something less polluting.We were recently able to arrange a confidential invoice discounting facility for a UK based distributor of electric bicycles, in order to support their future growth.GET A QUOTE FOR INVOICE...

  • Read More

    Selective Invoice Finance For Installation Of Car Charging Points

    This case study concerns a client in a very different industry sector that we were able to find a selective invoice finance facility.GET A FUNDING QUOTEThe small business was an installer involved with the installation of car charging points for electric cars. They also undertook some solar panel installation, under the Government's green deal scheme.Car charging points, for electric cars, are...

 

 

Examples of just a few of our finance partners:

metro bank sme finance
castle
pulse cashflow finance
lloyds bank
funding invoice
leumi abl