The early stages of starting a business can be incredibly daunting, even for the most seasoned business owners. Our latest client, a start-up in the sign installation industry, faced common challenges start-ups face. The sole director, a dedicated mother and entrepreneur, aimed to start her own journey after years of contributing to the family business.
The Challenge
Our client initially turned to spot factoring to manage her business’s cash flow. However, the high costs associated with this method quickly became a burden. As her business grew, she found herself putting all of her invoices through spot factoring, unaware that there was a more cost-effective alternative available.
How We Helped
We stepped in to offer a more sustainable solution. Understanding the financial strain of spot factoring, we introduced our client to selective invoice factoring. This approach allowed her to fund invoices from her primary customer, rather than spot factoring all of them. This provided the dual benefits of cost savings and maintained flexibility in managing cash flow.
The Result
Our invoice finance services allowed the business to manage their cash flow more efficiently and with greater cost-effectiveness. By selecting only certain customers for financing, our client avoided higher fees associated with spot factoring. Now, our client can pay wages on time while waiting up to 60 days for customer payments, making operations stable and employees happy.
Contact us today to learn more about how invoice finance can support your business cash flow.
