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• 23 Apr

  CHOCCs Facility Delivers Cash Injection for Building Restoration Business

  Below is a case study about how we found a CHOCCs facility for a building restorer operating in the construction sector. For similar support please call 03330 113622.

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  This case study explains how we were able to help.

  Read more FundInvoice Case Studies.

  Case Study: Urgent Cash Flow Support for Building Restoration Company Using CHOCCs Facility

  

  A large-scale building restoration company, with an impressive multi-million pound annual turnover, was recently referred to FundInvoice for a solution to creditor pressure without taking on additional debt. The business was under pressure from its creditors and needed additional working capital to accelerate cash flow and enable faster payment of its creditors.

  See this related content about: What to Do If A Supplier Puts You on Stop

  The Situation: Creditor Pressure

  Although the company was successful and well-established, temporary cash flow constraints had created difficulties in meeting creditor demands. With payments due and limited flexibility from existing arrangements, the directors sought a quick funding solution that wouldn’t interrupt day-to-day operations.

  The Solution: CHOCCS Invoice Financing

  Following a detailed funding search, we arranged a Customer Handles Own Credit Control (CHOCCS) invoice financing facility that suited the company’s internal credit control setup. This facility allowed them to retain responsibility for chasing their invoice payments while unlocking funding against the value of those unpaid invoices.

  The basis of this type of funding is that it will accelerate cash flow from existing sales invoices without creating additional debt.

  The facility was sanctioned, releasing a significant cash sum from the business's outstanding sales ledger. This immediate injection of working capital can relieve creditor pressure and give the management team the breathing space needed to continue focusing on their core operations.

  See this related article about:  How to Improve Cash Flow, and this product information about specialist finance solutions for companies that operate in the construction sector.

  Outcome: Improved Cash Flow

  Thanks to the flexibility of the CHOCCs funding structure, the company regained financial liquidity quickly without losing its credit control function. The funding line remains in place to support ongoing cash flow, offering the company a more secure foundation for future growth.

  By Glenn Blackman