Case Study Factoring A Phoenix Of A CVA In The Construction Sector
Phoenix Company From Prior CVA
Sometimes people need a second chance, even in business. This case study relates to a business that had entered into a CVA (Creditor's Voluntary Arrangement) but that arrangement had failed. You might imagine that would be the end but the company were able to launch a phoenix business (so-called as it rises from the ashes of the previous business, just like the mythical bird, the phoenix). The business was also trading with the construction sector, which combined with the history, could make it a difficult deal for traditional forms of bank funding. The answer was a factoring facility.
FundInvoice found this construction sector business a recourse factoring facility with an independent factoring company. They will provide both funding against unpaid sales invoices and a full credit control service. This will free up the directors to focus on building their new venture.
Even with a previous history such as this, factoring can still be available as it focuses on the strength of your receivables, rather than the financial strength of your company.