Product: IDeal™ with bad debt protection
Facility size: £1 million
This supplier of merchandise to high street retailers sought invoice finance to support their investment in a new product range.
The relatively new business had been self-funded since it was established but wanted to raise additional working capital to facilitate bringing a new outdoor clothing brand to the UK market.
Close Brothers Invoice Finance suggested that an invoice discounting facility could be an effective way to support the venture. The funds released from unpaid customer invoices would improve cash flow immediately to assist with the anticipated growth of the company.
The SME opted to use our real-time invoice discounting platform, IDeal™. The fully automated software means that they have a live view of available funds, making it easier to manage their account and allowing them to use their working capital as it is needed.
In addition, the distribution company chose to include bad debt protection within their facility. This means that in the event that one of their customers becomes insolvent, Close Brothers will reimburse any potential loss*. This gives them additional confidence as should the unexpected happen, their cashflow will not suffer.
Overall, the flexibility of their invoice discounting package appealed to the business as it gives them additional fiscal security. Due to the seasonality associated with the products they are selling, bad debt protection and the option to draw down on funds as required are positive provisions for the company.
*Bad debt protection is subject to a valid bad debt/credit limit being previously sanctioned on the correct business. Terms and conditions apply.