Case Study Recourse Factoring To Buy Out A Company Director
This case study highlights a slightly different aspect of how the cash released from factoring can be used.
What Can You Use Invoice Finance For?
In the case of this construction sector business they were looking to raise money for two purposes:
- To finance the growth of their business
- To buy out one of their company directors
We were able to introduce them to a factoring company that we're able to provide the finance for both these purposes. In addition to helping to fund the growth of the business, and the traditional use of factoring, the funding was also able to be used to help buy out one of the company co-directors of the business. There is no limitation on what you can use the finance for so factoring is ideally suited to purposes such as financing a buyout.
Construction Company Finance
It is also worth commenting on the industry sector that this client operates within i.e. construction. Not all invoice finance companies are prepared to finance construction sector businesses but there are a growing number of invoice finance companies that are now able to handle construction companies.