Our client provides specialised components to engineering firms for use in large infrastructure projects.
In this situation, it had been contracted to provide its goods to a building company in the construction of a major facility for a well-known multinational.
It was a long-term contract that was worth a lot of money.
At the time we met him he was sweating on an invoice for $150,000 which wasn’t going to be paid for a further 30 days.
He had no working capital available to meet his obligations and his bank wouldn’t help.
He called us to ask if we provided invoice finance for construction.
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Urgent
He told us he urgently needed cash to pay wages, his suppliers and his overheads.
He didn’t want to sign a long-term factoring contract, because he didn’t want to be tied to it.
He didn’t want to use his family’s home as security.
He wanted to know the cost upfront and didn’t want any surprises.
Solution
Our single invoice finance product was the solution which worked best.
Once we obtained confirmation from the building company that the goods had been delivered and the invoice would be paid within the agreed terms, we were able to provide our client with a cash advance of $120,000.
That gave him enough working capital to meet all his commitments and to give him some much needed breathing space.
It took us three days to arrange the finance and, when the invoice was paid, he received the remaining 20% less the cost of funding.
If your business needs short term financing, talk to our industry experts today.
