Case Study: Growing Logistics Company Unlocks Cash Flow with Invoice Finance

Company Overview

• Industry: Transportation & Logistics
• Location: Manchester, UK
• Annual Turnover: £2.5 million
• Staff: 25 employees
• Problem: Cash flow delays due to long customer payment terms (60-90 days)

The Challenge

The company had several large contracts with retailers and manufacturers who paid on extended credit terms—often taking 60 to 90 days to settle invoices. While the company was profitable on paper, it constantly struggled to cover fuel, payroll, and fleet maintenance costs. The delay in incoming cash threatened their ability to take on new contracts and invest in growth.

The Solution: Invoice Finance

After consulting with our financial advisor, the company implemented an invoice discounting facility through a specialist lender. Here’s how it worked:

• As soon as the company issued an invoice to a client, the lender advanced up to 85% of the invoice value within 24 hours.
• The remaining 15% (minus fees) was paid once the customer settled the invoice.
• The facility was confidential, so clients were unaware of the finance arrangement.

The Results

• Improved Cash Flow: The company no longer had to wait 2–3 months for payment. They had steady working capital to cover daily operations.
• Growth: With available funds, they took on two new contracts and added three more trucks to their fleet.
• Efficiency: Reduced stress and time chasing late payments; better financial forecasting.

Key Takeaways

• Invoice finance can turn unpaid invoices into immediate working capital.
• Ideal for businesses with strong sales but slow-paying customers.
• The company avoided taking on long-term debt and didn’t have to give up equity.

For all Enquiries please contact:

Jane Deeks

jane@deeksvat.co.uk

07710553831

Managing Director