The Challenge
The client runs a successful courier business in Brighton which was always under tight cash constraint due to payment terms from the main contractor. These payment terms were being further extended to 30 days from the original 14 days. This put increased cashflow pressure on the business in being able to continue to pay wages, fuel and finance costs for vehicles.
As an existing client of Honey, they appreciated our consultative approach and had approached us to arrange a cash flow loan. Once we had understood the core issue, we discussed the concept of invoice finance and explained how the facility enables the business to continue to grow through releasing the value held in the invoices they issue rather than a one-time cash injection that only solves an immediate pain point.
Our Solution
Through understanding the client's business, we discussed the facility and explained clearly how the process and funding would be of more value to the client than a single cash loan. We worked with the client in ensuring all the relevant paper trail was pulled together along with supplier contracts and accounting statements necessary to facilitate a quick transaction. This was necessary due to a large outstanding payment that was due within 5 days.
Once we had the proposal written along with all the supporting documentation, this was submitted to the funder, who came back with a Confidential Invoice Finance facility offer subject to audit. With the funder being aware through the open and transparent relationship with Honey, they had arranged the audit to be undertaken the day after the offer of terms had been provided.
The Result
The client was able to draw against existing invoices which had been raised and were awaiting payments, which released sufficient monies for the impending invoice the business needed to pay to be able to keep the business running. Moving forwards, the business has been utilising the invoice finance facility, and this has allowed the business to grow and maintain the cashflow which is critical for the business to operate.
"I am delighted with the service I have received from Honey and really appreciated a Director coming to the business to talk through the options available to me and easing my cashflow concerns."
Funding details
Facility:
£150,000
Advance:
85%
Term:
12 months
Funds Delivered:
3 Days
