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TVAF
7 West Mills Yard, Newbury,
Berkshire, RG14 5LP
However, as the business grew and demand increased, he realised it was time to take the next step and transition from a sole trader to a limited company.
However, with the growth came new financial challenges. As a limited company, they manage larger contracts with local authorities, which often comes with longer payment terms. Unlike before where payments were more immediate, they are now waiting up to 45 days to get paid on certain invoices.
While the business has never been busier, the extended payment terms created a cash flow gap that needed to be addressed, predominantly to managing payroll for the drivers.
To bridge this gap, we arranged an invoice finance facility, which was a game-changer for the business. Invoice finance allows you to unlock the value of our outstanding invoices, giving you access to funds as soon as the invoice is raised, rather than waiting the full 45 days for payment. With this facility, they can pay wages on time without worrying about cash flow issues.
If you are finding payment terms are being extended and it’s having an impact on your cashflow, get in touch to see if an Invoice Finance facility could help. Alternatively, if you are currently using Invoice Finance and would like us to review your exiting arrangement, please give us a call