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Industry: Vehicle repair

Product: Invoice discounting with bad debt protection

Facility size: £300,000

This small group of automotive businesses has been established for 40 years, with a successful trading record. The vehicle repair arm of the company in particular has thrived recently, seeing turnover increase by over 50% year-on-year. As a result, this area of the operation was selected for investment so that further growth aspirations could be realised.

To ensure day-to-day work could continue as usual while the expansion took place, working capital was needed upfront. The owner therefore considered invoice finance as a way of accessing funding tied up in unpaid customer invoices. This offered more security and flexibility than a traditional loan or overdraft.

Close Brothers recommended invoice discounting for the bodyworks shop. The facility would allow the firm to invest in the machinery, kit and premises needed to succeed with their growth plans. It also meant that the business could keep the finance agreement confidential and continue collecting client’s debts themselves.

In addition, due to a high concentration of debt with a small number of debtors, the company opted to invest in bad debt protection. This allows them to trade in the knowledge that should one of their preapproved customers become insolvent, any effect on their bottom line will be minimised.*

*Bad debt protection is subject to a valid bad debt/credit limit being previously sanctioned on the correct business. Terms and conditions apply.

Contact us

Close Brothers Invoice Finance
Ridgeland House
165 Dyke Road, Hove
East Sussex, BN3 1UY

T: 0127 305 9530 *

*Freephone from landlines

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