invoice finance covers cashflow gap for a single-customer ledger
Invoice finance doesn’t always have to be used immediately. Our clients often set it up as a way to prepare themselves for the costs associated with growth without worrying about ongoing fees.
One of thornmoney’s recent invoice financing clients is an SME that supplies LPG to industrial sites and other retailers.
In business for 18 months, the company has diversified and now also installs storage components for LPG. This has expanded its capabilities but also created a need for invoice finance.
the challenge: Being future-ready
This client was thinking ahead when he applied for invoice finance.
The business actually has a relatively short gap between being commissioned to complete a job and being paid, however the costs involved with getting a job done are relatively high.
The owner has been working towards onboarding new clients, but he wanted to ensure cash flow would not become an issue as the business grows. This prompted him to set up an invoice finance arrangement before the need became urgent, but he was cautious about committing to a long-term arrangement and paying ongoing fees because he wasn’t sure if he would definitely need the solution.
the solution: A flexible agreement with no lock-in contract
Thornmoney’s Business Development Manager Aris Lockhart was introduced to this client by their broker.
The company was in a great financial position so Aris was able to have up to $400k of invoice finance approved.
One of the key drivers that helped this client choose thornmoney was the ability to sign up without being locked into a contract. As Aris explains, “He wasn’t completely familiar with the concept, so he wanted to try it without signing on for a long period.”
Thornmoney’s model means clients don’t have to sign an extended agreement, and they are also saved from the need to pay an exit or termination fee. “This made a big difference to this particular client,” says Aris, “To add to this, while competitors charge a monthly minimum, we don’t apply fees if an account is not used.”
The deciding factor was the fact that invoice financing with thornmoney is fully confidential, meaning customers never have to know there is a third party involved. The client now has access to invoice finance should the need arise, without losing money to unnecessary fees.
The client now has access to invoice finance should the need arise, without losing money to unnecessary fees.
Looking for an invoice solution that suits your company? Contact Aris today!
contact Aris today
Connect with Aris today and help your SME clients acquire their much needed working capital!