Tailored Invoice Discounting
A manufacturing company was experiencing cashflow difficulties due to their growth, and specifically the slow payment from one major customer.
Our client had approached their Bank for increased overdraft facilities, but were declined.
Red Dot suggested they consider invoice discounting or factoring – this is where a finance company will advance up to 85% of the value of a sales invoice as it is raised without having to wait for the customer to pay.
Our client had considered invoice discounting or factoring, but had felt this was not an option as their other customers paid promptly so they did not want a facility to include all customers.
Red Dot introduced them to an Invoice Discounting Broker – at no cost – who identified a specialist invoice discounter who was able to offer facilities for this sole customer.
The client had a meeting with the firm, and agreed to use the services of the invoice discounter.
The result was a major improvement in their cashflow and a very happy client!
This is yet another example of our client’s benefiting from our knowledge and experience, and introductions to our trusted network of professionals.