Our customer is a specialist manufacturer of glass. The business has supplied a wide range of glass products to the commercial construction industry since 1995.
They have been faced with several challenges which contributed to cash flow struggles. Late invoice payments from clients meant that they were often concerned about meeting monthly commitments such as PAYE taxes and payments for machinery, which caused unnecessary pressure.
The business had historically been funded by an overdraft, along with contributions from the Company Director. The Director decided to look for alternative forms of funding as a more viable, long-term solution that would be less restrictive.
After considering the day-to-day challenges the business faced, the director sought guidance from their accountant who suggested invoice finance as the most appropriate funding solution for them. The director was hesitant at first as she had always believed this to be an expensive way to finance a business. However, further to meeting her Churchbridge Business Finance expert, she was pleased to realise that the advantages of this type of funding far outweighed any initial price reservations. One of the main benefits was the understanding that the business would receive money from its invoices within 24 hours of them being raised.
Churchbridge provided a £250,000 invoice discounting facility and although the team at the company doesn’t always use the maximum available each month, they know additional funding support is there when required.
The director and the team have now been using invoice discounting for a number of years and are well and truly converted to this form of finance. They said: “I wouldn’t hesitate to recommend it to any company looking for cashflow support. It has been instrumental in helping the business move forward and I don’t know how we managed before.” Not only do they no longer have the constant stress of not knowing how they are going to meet their monthly commitments, but they are now able to invest in new machinery to make efficiencies within the business without having to find extra funding.