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Invoice finance without a trust account
In the past, invoice finance products required a vendor’s clients to pay into a trust account that was accessible to the lender. But now Risecap has access to a new product that requires no trust account, making it invisible to clients.
Background
This medium-sized business serves several large international companies with commercial design, build, and maintenance services.
Funding request
Despite diverse revenue streams amounting to over £4 million annually, cash flow was problematic because many of their large, blue-chip clients had in place 60-day payment terms.
The owner did not want to use invoice finance as that requires clients to change the account they make payments into, an inconvenient and slow process.
How we helped them RISE
We have access to a new invoice finance product that doesn’t require clients to change their payments.
The lender agreed to advance up to 99% of any invoice up to a combined total value of £250k. On this the business had to pay an interest rate of 0.06% per day.
From the clients’ perspectives, nothing had changed, but for the business cash flow was moving again.
Continued support
We additionally supported this business to free up cash by refinancing a loan that was costing them £8k per month. Read more >