- 21 May
Working Capital Partners Go Into Administration
Working Capital Partners (WCP), the selective invoice finance and trade finance company, have gone into Administration. This appears to be as a result of a recent client fraud. Sad news about a long established firm, that first entered the market back in 2010.
If you need alternative funding please contact Sean for help on: 03330 113622.
Client fraud is one of the biggest challenges facing funders, whereby a customer perpetrates a wrongful, or criminal, deception intended to result in financial gain. Whilst financiers take extensive measures to try and prevent such occurrences, there are occasionally situations where fraudulent customers manage to evade the detection measures put in place by funders.
Working Capital Partners In Administration
Administration is an insolvency process whereby a company is placed under the control of an Insolvency Practitioner, the Administrator, who takes over the running of an insolvent business (one that cannot pay its creditors as they fall due), in order to maximise the returns for creditors of the business. An Administrator may choose to move the company into Liquidation, or they may trade some aspect of it forward, to maximise returns for the creditors. Seeking the sale of the business may also be within the remit of the insolvency practitioner.
Working Capital Partners, were also members of UK Finance (the industry body for the asset finance sector) did occupy a small, but important niche. Firstly, they offered a selective invoice finance service, a flexible invoice funding service whereby clients can pick and choose invoices to raise finance against. Thankfully, there are a number of alternative funders operating within that space.
However, WCP were also one of a small number of funders that could also provide trade finance, or purchase order finance facilities. The number of alternative providers in that sector is much smaller, although there are options still available.
If you are looking for information about improving cash flow generally see our article: How To Increase Working Capital.