Industry: Electrical contractors
Product: IDeal™ invoice discounting
Facility size: £250,000
Since opening in 2016, this well-managed electrical firm had been largely self-funded, with a small overdraft providing some headroom. The owners needed to find additional financial support due to strain on cash flow.
After discussing their requirements with a funding expert from Close Brothers Invoice Finance, the business decided that invoice discounting would suit their business model well. This type of facility provides working capital as soon as customer invoices are raised and enables the business to continue collecting payments from clients themselves.
The SME also opted to use our automated invoice discounting platform, IDeal™. This makes it easier to manage income by automatically reconciling invoice payments, giving a live view of available funds and enabling them to access cash from unpaid customer invoices 24/7.
Invoice discounting has proved to be a cost-effective way to improve liquidity for the business. The prepayment on outstanding invoices, increased access to cash resources as soon as the facility was opened and enabled them to purchase materials to complete jobs and continue to pay staff wages on time.