A new start up eleven months ago and on target to achieve first years turnover of £750,000
The problem was a poor choice of factor at the outset. Despite the promise of a full factoring service including sales ledger management (with fees to match) the customer found itself having to chase the debts which the factor had allowed to run out to 80/90 days. This was having a serious impact on cash flow at a time when the business was growing rapidly. The directors needed to act quickly and contacted us for help.
We were able to asses the situation within a few days and arranged for an audit to be competed within 5 days. The existing funder was repaid the following week.
The company was doing so well we were able to persuade the lender to replace the factoring facility with a confidential invoice discounting facility at cheaper cost.