How invoice finance could help your business in 2021

2021 is set to be another difficult year for businesses as the Coronavirus pandemic causes disruption to trade and cashflows. Previously successful and growing businesses are facing the prospect of losing clients or clients experiencing financial difficulties. This can cause disruption to cashflow, issues for existing finance agreements and interrupt longer term business plans. Invoice finance can provide a bridge and access to quick finance to help ease cashflow.

We have spoken to one lender and one broker about their experiences of firms experiencing disruption due to a loss of a client and how invoice finance helped their cashflow.

EasyRecruitUK.com received a £1.5m invoice finance facility and a £250,000 Coronavirus Business Interruption Loans Scheme (CBILS) loan from specialist lender, Ultimate Finance. The firm had experienced impressive growth and had been scaling its operations. Their cashflow was impacted because of a client experiencing financial issues. This also impacted their relationship with their long-standing bank funder. The Coronavirus pandemic then further impacted their turnover, compounding the issues with their bank funder. The result was a viable business needing to find a new funding arrangement.

The agreed invoice finance facility will help the long-term cashflow issues of the business, with the funds from CBILS allowing the firm time to rebuild their sales pipeline.

Kenny MacNeil, owner of EasyRecruitUK.com comments:
“With our previous bank funder, we were experiencing cashflow pressure due to large reserves being held against certain key Clients due to external factors which didn’t give us the cashflow headroom required to navigate this challenging period. We required a partner who understood the challenges we faced and was flexible enough to not only allow us to keep trading confidently but also invest in the future of the business. What we have found with Ultimate Finance is that they are straight forward to deal with and worked in partnership with us to find the right funding solution.”

Euan Bell, Senior Regional Director for Ultimate Finance commented ‘It’s been great to work with Kenny and his team, they are an exciting and forward-thinking business who are continually looking at new ways to diversify and grow. We are extremely proud to have structured a funding facility which will support their ambitions and keep their business moving forwards.’

Find out more about invoice finance from Ultimate Finance.

Hilton-Baird Financial Solutions, the preferred invoice finance broker of Moneyfacts.co.uk has helped a company specialising in component metalwork to swiftly secure a new invoice factoring facility. The business had a funding facility in place, but after the loss of a key client they decided to review their funding options. Hilton-Baird Financial Solutions was able to review their current arrangement and look at alternatives that might suit the firm better. The new £100,000 facility helped the firm to meet their immediate cashflow requirements and those needed in the future.

Evette Orams, Hilton-Baird Financial Solutions “We are delighted to have helped another client to secure a working capital facility that’s aligned with their needs,” said Evette Orams, Managing Director of Hilton-Baird Financial Solutions.

“Having been impacted by the loss of a key client due to the impact of the pandemic, they proactively reviewed how their prior funding would work for them moving forward, and decided it would be prudent to explore the options available.

“We place much emphasis on getting to know our clients, understanding their business, gaining insight into their objectives and the challenges they face, so that we are able to introduce the most suitable options and providers that can support them, both in the current climate and as they move forward.

“Our task is to table the most suitable options available so our clients can consider their merits, and choose the facility they are most confident with and the funder they have the most affinity with. We take great pride in supporting our clients and seeing them grow and flourish with the aid of the right facility.”

Find out more about invoice finance and CBILS.

Read our review of invoice finance lenders.