When One factoring provider isn’t necessarily the same as another

A South East label manufacturer was having problems with its existing invoice finance company.

The lender decided to restrict the amount of money the company was able to get from its invoices. The reason – the lender thought that the label manufacturer’s customers were not credit worthy.

• What do you do if your lender thinks your customers are not credit worthy?

The label manufacturer had assumed that all finance companies take the same view on customers “poor rating”.

The Business Bureau was able to demonstrate that by investigating their customers further we were able to get them the funding they required, at a price similar to what the company was currently paying.

The Business Bureau conducted a full review of the label manufacturer’s customers. The Business Bureau was particularly interested in iinvestigating previous payment history.

We also investigated the company’s future requirements.

Armed with this information The Business Bureau was able to source and contact a more suitable finance company.

Whilst the new invoice financier would not give the company full funding against all their customers, after negotiation, we were able to structure funding to be provided at the times the label manufacture needed it most.

Industry sector: Manufacturing

Facility provided: Factoring

Total Facility: £200,000