Transforming Cash Flow with Strategic Invoice Financing in the Construction Sector

The Brief

The client approached us with a loan enquiry, seeking financial support to acquire materials for a sizable new contract.

The Challenge

The client, operating in the construction sector, exhibited resistance to considering Invoice Financing (IF) and firmly insisted on exploring traditional loan options. Additionally, the client had already obtained unsecured loans, posing difficulties in securing additional funding through conventional means.

The Solution

In response to the challenges, we dedicated time to provide a comprehensive explanation of the benefits associated with implementing an IF facility. Our focus centred on educating how IF would positively impact the clients cash flow and contribute to the improved serviceability of their existing loan obligations. Subsequently, the client recognised the value of the IF solution and expressed a commitment to furnish the necessary information for the funder to proceed with establishing the IF facility.

The Outcome

As a result of our efforts, a large IF line was successfully established, enabling the client to leverage cash derived from raised invoices. This strategic implementation of IF not only fulfils the client’s immediate requirements but also enhances their working capital availability, surpassing the limitations imposed by the previous reliance on loans.