Supply chain finance facility gives asbestos removal company extra working capital

supply chain finance for asbestos company

Client: National asbestos removal Company.

Turnover: £3.3 million

Facility: Supply Chain Finance

Location: South Yorkshire

A fast growing asbestos removal Company needed additional working capital as their contracts grew faster than their traditional bank overdraft could service. Working with the Managing Director and Company accountant Enable Finance moved quickly to understand how the business operated and worked under JCT contracts.

After understanding the contractual nature of the business and the fact the client needed the funding to be unsecured Enable Finance moved quickly and delivered a supply chain finance facility. Providing the client with a revolving credit facility allowing them to extend terms with their suppliers by up to 120 days.

For more information on how Enable Finance could fund your business growth please get in touch.

Supply Chain Finance Initiative To Improve Cash-Flow For Small Business

supply chain financeThe Prime Minister David Cameron is discussing a scheme to get the largest UK Companies supporting its smaller supplier companies.

The supply chain initiative has been suggested to work in the following manner. The large company receives an invoice from its smaller supplier. The large Company notifies its bankers that the debt (invoice) is approved and will be paid as per credit terms (30,60 or 90 days etc.) The Supplier is then able to approach its bank and borrow up to 100% as a cash advance against that invoice value. Thus helping the suppliers cash flow.

I know the Prime Minister is only trying to help, but this exact same product exists already, widely used and has been around for decades. This product is know as Invoice Finance… some may know it as debt factoring or invoice discounting.

This Government initiative just seems like another headline grabbing sound bite. The government really should spend their time concentrating on calming the markets and restoring confidence, reminding people the world will keep on spinning and massive opportunities exist out there.

If you would like to read the more on this article click here. If you would like to know more about existing cash flow finance products including factoring and discounting click here