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Case
Study
A new start fashion boot/shoe importer needed import funding
and a very small level of invoice finance. The business
was expected to grow gradually during year 1 but the pedigree
of the prime mover suggested that the ambitious volumes
in year 2 could be achieved. Initially factoring was unsuitable
due the low level of outstanding invoices and the irregular
rate/flow of invoicing expected during year 1. The shoes
needed to be imported via Letters of credit for which there
would be forward orders.
Solution
Our approved partner was brought the deal, provided selective
invoice finance initially, plus Letters of Credit, funding
100% of purchases going forward including VAT & Duty,
against confirmed forward orders. Within 12 months, sales
had grown to where a factor was needed to run and fund the
sales ledger.
This was referred back to our factor partner who was able
to immediately boost the company's cashflow by taking on
and funding the sales ledger whilst we would continue to
fund purchases against forward orders with repayment to
be made direct to us from our Factor partner.
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Merchant
finance case studies