National Software Engineering Business Invoice Finance

Background

A large, national software engineering business experiencing a rapid growth period due to a number of national framework contract wins. As a result, they are growing their staff numbers rapidly and their turnover is growing exponentially.

Challenges

• High contractual debt
• Very fast growth and projection lead
• Huge recruitment and training costs of staff
• Huge internal investment in infrastructure sucked cash from cashflow
• Unsupportive current funder

Solutions

We did a tendered process working alongside the customer and their accountant to find the right funding partner. The chosen funder provided a high percentage of invoice availability, exceptionally keen rates, and most importantly, provided the most support if the invoicing style was to change in-life. To top things off, they helped absorb and mitigate the costs of the large exit fee the old funder posed.

Additionally, to this, we put an Asset Finance Line in place to support the internal investment in infrastructure and computer systems. The overarching ERP system has a 12-month implementation cycle, and the funder is covering the stage payments, so they don’t have to come out of cashflow, leaving the customer more cashflow to support their growth.