Getting Paid Upfront
Clear Business Finance helps a new start courier to continue offering their clients attractive payment terms, whilst securing an immediate cash flow injection to keep up with rising bills.
One immediate hurdle was that this logistics company was a relatively new start business with no trading history. However, the owner had gained years of experience in the sector and had a wealth of industry knowledge. As a result of his reputation in the market he had secured several lucrative contracts with online distribution platforms guaranteeing him regular work. Unfortunately, what he had not accounted for was the cash flow gap between having to make and receive payments, putting an enormous strain on his liquidity. Subsequently, the company begun to default on payments and had several County Court judgements lodged against the business.
From the perspective of more traditional lenders the business’s adverse credit and a lack of trading history presented complexities, which the client was experiencing first-hand.
At Clear Business Finance we understand there are times when a computer algorithm doesn’t quite cut it and that is why our team will assess every application on an individual basis, to ensure a happy outcome for our customers.
We identified potential future income locked up in their trade debtors. This is in effect business that they had completed and invoiced for, but their clients were taking between 30 – 90 days to settle. Effectively creating a cash flow gap which this new start courier couldn’t afford. We approached several invoice finance providers on our panel and secured a facility with no upfront fees.
This facility is now providing the business with the flexibility to continue offering their clients attractive payment terms, taking on as much work as possible, with the comfort of knowing that our lender will now be paying them upfront. In addition the customer is presented with the opportunity to build a good payment history, improving his credit status and therefore opening up the possibilities of securing additional funding in the future.
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