How do you improve Invoice Finance facilities when relationships go bad? In this case study, we examine how Breadalbane Finance was able to improve an Invoice Finance facility for a Plant and Machinery hire business.
Brief
A Plant and Machinery Hire Business with a £1.2m turnover became increasingly frustrated with their existing Invoice Finance provider as they felt they did not take the time to understand their business. This resulted in ineffective credit control and reduced funding levels. The business contacted Breadalbane Finance because of our reputation for understanding the Invoice Finance market and being able to work closely with the funders. The client requested that Breadalbane Finance find them an appropriate facility.
Challenges
- Relationship with existing provider had broken down and the client felt there was no flexibility.
- Cash flow always tight due to 70% advance level and restricted credit limits
- Management becoming increasingly frustrated and distracted from running the business.
Solution
- Breadalbane reviewed the existing facility and gained an understanding of the challenges that the existing funder faced. Most of this revolved around the nuances of the Construction sector.
- We explained these challenges to potential funders and gauged their responses prior to making a recommendation to the client
- Our recommended funder then worked with the business and negotiated a facility that provided increased funding levels and more focussed credit-control
- They were also able to make the overall fee structure more cost-effective.
Outcome
- Improved Cash-Flow for our client
- A better relationship with a funding partner that they can work with.
- Client able to get back to hands-on work at the front end of the business
What the client said
Breadalbane understood our business and the challenges we face in the construction sector. Their knowledge of the Invoice Finance market meant that they could recommend a funder that would be able to work with us and structure an appropriate facility.
