- 03 Feb
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.
Invoice Finance & Factoring In Southern Ireland (Eire - Republic of Ireland)
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 needed a funder that could provide funding after that change.
Their existing invoice finance facility provider was unable to accommodate the change of location, but the prospect still needed to be able to access funding against their invoices, for what are in effect exports to Europe.
As their location was to be Southern Ireland, there are only a handful of invoice finance and factoring companies that would be able to assist with the provision of invoice finance to southern irish companies. Specialist legal agreements are required to govern the invoice financing facility.
We were able to introduce them to several providers that could provide support. With more than one option on the table, the issue of pricing then became key, with our prospect being able to select the most cost-effective option from those that were available.
This is a good example of a case where the prospect had not been able to access what they needed directly themselves. It required the services of a broker, such as ourselves, who have a much broader knowledge of the sector and can direct them towards parties that will be able to help. We don't charge our clients to use our broker service, instead receiving a small commission from the provider if the facility goes ahead.
Financing Temporary Labour Hire
In this particular case, whilst the complications are the location of the client company and the debtors, the core trade is very suitable for receivables financing. Temporary labour hire is one of the sectors where we see the highest penetration of receivables financing. It lends its self very simply to the funding models that factoring companies employ.
The key benefit with temporary labour is that timesheets are normally involved, which tend to be signed off by the end debtors, and this is very clear evidence of the outstanding debt. This gives the funder a great deal of reassurance regarding the quality of the underlying receivables, such that they are prepared to fund at high levels. This funding helps the agency pay their staff payroll.