This particular client was unhappy with their current lender and decided to look for other alternatives.

The problem: The current factor was unhappy with the Company’s performance and started to reduce prepayments and threatened to disclose their confidential facility.

The solution: We contacted the director who was keen to retain confidentiality and was adamant that the business was being prevented from turning the corner by the restrictions imposed by their current lender. We found a lender who provided a confidential facility and increased the initial advance rate to 85% pending a review of credit notes in 2 months time. This is known as the level of dilution. The review was conducted and confirmed the low level of dilution and the factoring company maintained the advance rate at 85%.

A difficult sector requiring further funding which was only forthcoming because we introduced a factoring Company who were willing to spend the time to understand the business and provide a facility which met their cash requirements. The transaction value was £250,000.