Our client, an electrical goods wholesaler, sources electrical goods, kettles, toasters etc. from the Far East, customers include well known national high street retailers as well as small independent retailers.

The problem: As the business was growing rapidly, cash flow became very tight as the order book grew and more stock needed to be purchased before being shipped to the UK.

The solution: We introduced an independent factoring company that was able to provide a combined factoring and trade finance facility allowing the goods to be purchased through a Letter of Credit facility, which was settled when the goods were delivered to the retailer and the relevant invoice raised and factored. The asset based lender needed to conduct their due diligence quickly in order to meet tight shipping and funding deadlines. This combined facility helped our client increase turnover to in excess of £1m within the first 3 years of trading.