Our client was facing real problems each month when it came to purchasing new raw materials to use in production - cash going out the door was not being matched by cash coming in. in terms of frequency. The factory was making a profit but each month there was the risk that production had to stop until invoices were paid.

The Financial Direct of the company had to find a solution which offered smoother cash flow and the ability for raw products to be paid while invoices remained unpaid. As the company's turnover was over £2M, invoice discounting was the better service as the company also had a full time employee managing collection and payments of invoices.

The facility put in place allowed the company to continue its growth at a faster rate safe in the knowledge that taking an extra order wouldn't have the potential to cause the company to run out of spare cash.