Enness was approached by an established company that had previously used the firm to arrange development finance. The business generated approximately £1 million in annual turnover and was continuing to grow, with plans to invest in its marketing function and move to larger, better-located premises.
The company needed additional liquidity to recruit a dedicated marketing team and relocate its sales operation. Although trading activity was generating sufficient revenue to support these plans, a timing gap had developed between issuing invoices and receiving payment from customers.
A significant amount of capital was therefore tied up in outstanding receivables, limiting the funds immediately available to support the expansion. The company had also reported a loss in the previous financial year, which reduced the number of traditional funding options available.
OUR SOLUTION
Enness identified invoice finance as a suitable way to unlock capital against eligible outstanding invoices. This allowed the company to access funds before customers settled their accounts, helping to bridge the gap between revenue being generated and cash being received.
A confidential invoice discounting facility was arranged, allowing the company to retain control of its customer relationships and collection process. The lender was also comfortable considering the application despite the recent loss, taking the company’s wider trading history and underlying performance into account.
The arrangement released funds that had previously been tied up in unpaid invoices, providing greater flexibility as the company expanded. This supported investment in additional marketing resource and the move to premises better suited to its continued growth.
This case demonstrates how invoice finance can help established businesses manage cash flow when there is a gap between generating revenue and receiving customer payments. Specialist funding can be particularly useful where recent financial performance makes conventional borrowing more challenging, but the underlying business remains commercially viable.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, business suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
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