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• 25 Jul

  Case Study Increased Funding From An Independent Invoice Discounter For A Fruit Packing Company

  This case study explains how FundInvoice found significantly increased funding levels, from an independent invoice discounter, for a fruit-packing business.

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  Increased Funding From An Independent Invoice Discounter For A Fruit Packing Company

  This case concerned an established fruit-packing business that had been using a bank-backed invoice discounter for several years. Whilst the bank had supported them for many years, there had been changes within their business that had caused issues with the amount of finance that the bank was able to provide.

  Flexible Prime Debtor Funding Restriction

  However, they had developed a prime debtor situation on their sales ledger and this was going to cause funding restrictions with their existing bank-owned discounter. They needed a provider that would take a more flexible and relaxed view.

  A prime debtor is a single customer who grows to represent a large proportion of the total sales ledger. This can be an issue for discounters as it means that the funding provided is heavily reliant upon this single debtor. Typically, a funder will apply a prime debtor restriction or a concentration limit to control the amount of finance provided in respect of that major debtor.

  Helpful related article: Ways To Increase Customer Numbers.

  Increased Funding From An Independent Invoice Discounter

  FundInvoice were able to introduce this client to a substantial independent invoice discounter that was able to take a much more relaxed view of their prime debtor concentration issue. The new funder was able to offer an RLS loan in addition to the invoice discounting facility.

  Increasing The CID Prepayment Percentage

  They were also able to provide a relaxed prime debtor restriction and an increased CID prepayment percentage against the invoices through a confidential invoice discounting facility. This facility gives the client the ability to continue to maintain their in-house credit control function retaining control over all aspects of the contact with their customers.

  All combined, this enabled a significant amount of additional funding to be released to our client to support their continued success.

  By Glenn Blackman