Check Debtors Eligible For Government Green Deal Invoice Finance
We have been able to help a number of customers source invoice finance against invoices in respect of government "green deals".
These are situations where a company is providing a service or product to end users, that falls under the banner of the government's "green deal" initiative, and hence it is funded in part, or in full by the government. However, in many cases the customer is not dealing direct with the government, rather they are sub-contracting from a larger provider.
There tend to be two major issues with finding finance for such situations:
- Debtor quality i.e. the standing of the main contractor.
- The nature and complexity of the contract between the customer and their debtor.
The nature of the contract will need to be reviewed on a "case by case" basis, but there are points a sub-contractor can consider regarding debtor quality, prior to entering an arrangement with a debtor/customer.
Checking Debtor Quality
In many cases, we have been contacted by sub-contractors that have already dealt with their customer/debtor (the main contractor) for a number of months. Therefore they have a number of unpaid sales invoices that they now want to release cash against. In many cases they are now struggling with their cash flow because of this and if the debtor quality turns out to be poor, there can be issues raising finance against the unpaid invoices.
There is an alternative approach, you can check the debtor quality in advance. We can put you in touch with invoice finance companies that are familiar with handling green deal invoices and they will be able to tell you, in advance, which debtors are eligible for funding, based on arrangements that they have previously funded. In this way, you can choose the customers that you deal with in the knowledge that they will be eligible for funding. If you seek guidance regarding the debtors that you deal with, before you deal with them, you can avoid being stuck with unpaid sales invoices that are not eligible to be funded.
Getting Invoice Finance Against Government Green Deal Scheme Invoices
For invoice funding against Green Deal related invoices we can help: APPLY FOR FINANCE AGAINST GREEN DEAL SALES INVOICES