27 Jul Invoice factoring for small businesses
Have you ever thought about how many individual parts to into making a modern motor car? It’s one of those questions that nobody knows!
One thing that is true however is that all the major manufacturers do not make all of the components of a car themselves, From wiring to nuts and bolts, from fuses to lights and upholstery there are hundreds of companies that contribute in a small or large way to your pride and joy as you drive it along! The smaller companies are glad to have the business of the major car manufacturers – that is until it comes time to be paid when previously agreed terms of trade become longer and longer – 30 days is extended to 45 or 60 – phone calls chasing payment become the norm and all sorts of cash flow problems arise. We have just concluded a transaction with a major manufacturer of automotive parts – their clients include Audi, BMW, Fiat and Mercedes none of whom appear to be noted for paying on time! The client’s expansion was being strangled as they had a lack of cash due to late payments – set up a €2,000,000 invoice discounting facility which meant that 24 hours after they issued an invoice to one of the manufacturers the money was in their bank – the facility revolves every month as the drawings are repaid by the client’s customers – one very happy client!
We could do that for you – turnover as low at £75,000 per month considered or if you have one large client with one contracted invoice we can do that as a one off transaction too!