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• 25 Jan

  Selectively Funding The Invoices Of A Courier Logistics Company

  

  Selectively funding the invoices of a courier logistics company can be a step towards dramatically improving the cash flow of a transport company. In this case study, we were able to arrange such a facility for one particular transportation sector client.

  Funding A Courier Logistics Company In The Transport Sector

  Within the transport sector companies typically carry high operating costs for fuel, vehicle maintenance and staff. The rising cost of fuel can be a particular issue and there is also typically a credit period that a courier often has to wait to get paid for jobs that have been completed. Together, these factors can cause cash flow pressures on transport businesses. To ease these pressures, many couriers turn to the invoice financing sector for working capital support.

  Selectively Financing Invoices

  One particular courier logistics company was seeking to selectively finance some of their invoices to release cash when they needed it. Selection of invoices means that not all transactions need to be funded and this can help keep the costs under control. There can be bulk discounts if you have all your invoices funded, but not all clients require this amount of financing.

  NO Personal Guarantees Required

  In this case, our client did not want the directors of their business to have to give personal guarantees to the finance company. This would mean that their personal assets could be at risk if the company was unable to repay the finance to the funder (note that typically, the debtors pay their invoices and this cash repays the funding).

  FundInvoice was able to find this client a facility with a provider that could selectively fund individual invoices that they choose to submit for financing. Additionally, the funder was prepared to rely on conducting telephone debt verification in advance, to avoid the need to take a personal guarantee from the directors. This satisfied all their requirements although it is not an arrangement that is provided by all funders in the UK.

  By Glenn Blackman