International Invoice Finance Deal

• Client: International fashion brand
• Facility: £1 million
• Requirement: Invoice finance against overseas receivables

Enness was approached by an established fashion brand with a growing international wholesale customer base. The business was looking to unlock working capital tied up in invoices owed by overseas customers, allowing it to manage its cash flow more effectively while continuing to serve its international client base.

The nature of the receivables made the requirement more specialist than a standard invoice finance transaction. The company’s financial position fluctuated, while its debtor book included customers across multiple international jurisdictions. These factors made it difficult to find a traditional invoice finance provider willing to offer a facility on terms that suited the business.

Rather than trying to fit the client into a conventional structure, Enness looked across its specialist lending network for a provider with experience of international receivables and a more flexible approach to funding.

We identified an international invoice finance lender whose model was particularly well suited to the client. The facility operated on a pay-as-you-go basis, allowing the business to access funding against eligible invoices without the costs and restrictions typically associated with some traditional facilities.

Importantly, the structure did not require setup fees, personal guarantees or additional charges and debentures. This gave the business greater flexibility while avoiding some of the additional commitments that can accompany more conventional forms of business borrowing.

The lender’s approach also meant that the majority of the invoice value could be advanced once the relevant invoice had been approved, with interest charged based on the length of time the customer took to settle the invoice. This aligned the cost of the facility with its actual usage rather than requiring the business to commit to a fixed borrowing structure.

For a fashion business working with international wholesale customers, this provided a practical way to bridge the gap between raising invoices and receiving payment. It also gave the company greater control over its working capital without requiring it to alter its underlying customer relationships or wait for overseas debtors to settle before accessing funds.

The case demonstrates how international invoice finance can provide an alternative source of liquidity for businesses whose debtor books or financial profiles fall outside the appetite of mainstream providers. The right lender can structure funding around the nature, jurisdiction and timing of a company’s receivables rather than applying a one-size-fits-all approach.

Enness’ access to specialist international lenders enabled us to identify a solution that reflected the client’s particular trading model. If your business has significant overseas receivables and is looking for additional working capital, speak to a mortgage specialist to explore your options.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, receivables assessment and lender criteria. Terms and availability will vary depending on individual circumstances, debtor profile and the proposed facility.