Case Study Selective Debtor Factoring For Dry Cleaning For Hotels & Bed And Breakfasts B and Bs
Dry Cleaning For Hotels And B&Bs
Sometimes, customers don't want to raise finance against all of their debtor book. This was the case for a recent client that supplied dry cleaning services to hotels and a number of bed-and-breakfasts (B&Bs).
This particular client had a small number of large hotel chains that he supplied, and so he was looking for funding, selectively, against those debtors. However, he did not want to submit the invoices to numerous bed-and-breakfasts for finance. The small B&Bs all paid quickly so the client was not interested in helping to collect those invoices or in receiving finance against them.
Selective Debtor Recourse Factoring
FundInvoice were able to find a recourse invoice factoring facility for our client which would provide the finance that they needed for growth, this finance was provided solely against the hotel invoicing on a selective debtor basis.
Comparing Selective Debtor Finance With Selective Invoice Finance
The facility that we found them, was provided at approximately half the cost that was quoted for a true selective or spot factoring facility whereby they would choose individual invoices against which to receive finance. It is not always the case that a completely selective facility will be the cheapest option for a customer. Despite this, many customers still believe that a completely selective invoice finance facility will be cheaper than a selective debtor factoring arrangement. This case shows that this may not the case.