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Invoice Finance for a Legal Firm - Revolving Facility

Sector: LEGAL | Value: £850,000
Equipment type: Invoice Finance | Term: Revolving

We introduced this successful legal firm to a new invoice finance company.

Problem:

The business was achieving significant growth, but due to the changes in legislation their focus was on a sector where the payment terms exceeded 3 months. Access to funding via the invoice finance facility was being restricted, despite growth in debtor book.

 

Approach:

The approach taken by their invoice finance funder and reserve against aged debt is common practice. Bathgate introduced our client to an invoice finance company who were able to structure a facility to accomodate the longer standard payment terms.

 

Solution:

An invoice finance facility was agreed with a longer recourse period an thus reducing the level of reserves for aged debtors. Risk assessment and management of the facility limit is focussed on a level of rolling 3 month cash collection figures.