Invoice Finance – Transport Case Study

Having clients across multiple industries, with multiple scenarios means Flexible Capital requires an arsenal of solutions.

On such customer, a small long haul transport operator, with a fleet off 4 trucks (and various trailers) has been experiencing growth. With this growth, comes the need to employ more staff, purchase another truck, and take on an additional (part time) resource to help with managing the admin side of the business. Combine this with the majority of debtors making payments on extended terms (30 days End of Month), and this created quite a stressful situation for the client.

In order to ensure fuel bills, registration and wages could be paid on time, we assisted the client in establishing an invoice finance facility. This allows the client, when required, to take early payment (80% of the invoice value) to cover these costs. When the debtor makes payment, the client receives the remaining 20% (less a discount fee).

The product selected for this client was selective, meaning the client only pays when they utilise the facility, and if they don’t require it – they simply don’t use it!

The client continues to ‘keep on trucking’ without the cashflow headaches, and is extremely happy with the flexibility of their new facility.

If you or anyone you know would like to consider your options regarding cashflow, contact one of the team at Flexible Capital today!

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