After bank loan rejection, Invoice Finance helps logistic start-up find its feet.
Two long standing co-workers decided to leave their current employers, go it alone and set up their own import logistics company in the North of England. However when the bank declined their Loan Application for Start Up funding, trading was forced to grind to a halt. Personal cash reserves dried up meaning they couldn’t pay the VAT bill to release the containers that were waiting for collection at the docks. Their business was in danger of collapsing before it had even started!
As the containers were grounded, there was a delay in delivering the goods to their customers. The Directors contacted Ashley Commercial Finance stressing the need for imminent start up funding. After they discussed their requirements with an adviser, Ashley swiftly put an Invoice Finance Facility in place with a £70k funding limit. The funding allowed them to pay the VAT, release the containers and also hire a haulier to deliver the goods to the customers.
As the company continues to trade, the new Invoice Finance facility will allow them to immediately unlock the cash tied up in their unpaid sales invoices. They no longer have to wait 30+ days for payment, therefore generating quick working capital and improving cash flow.
With the support from their Client Manager the company will have ongoing access to funding that will automatically grow with their business.