Making the Unfundable Fundable

As an Invoice Finance Provider, you work hard to generate business and can be left frustrated when a business you are working with cannot get the facility they want and need.

Credebt can improve the ledger profile and associated systems, people and processes and send it back to you as a fundable.

In this post, we will provide you with details of how we do this for the potential Clients of our valued Invoice Finance Partners.

Ledgers you may struggle to fund

Not all ledgers are created equal; some are easy to fund, and you will go through the application in no time, others, as you will know, require a bit more attention and can be difficult or even seemingly impossible to fund.

Listed below are the red flags in ledgers to look out for, that would make it a struggle to fund them:

• Too much overdue debt
• High DSO
• Poor Order to Cash process
• Poor or absent Credit Control and Processes
• Large number of queries being generated
• Lack of staff/resources or poor resources

Ledger challenges that can be fixed

Everything we mentioned above can be fixed within 3 months, including:
 

1. Getting the old debt (potential recourse amount) to under 10%.
2. Reducing the overall aging profile of the ledger so that at least 80% of the ledger value is less than 30 days past due.
3. Getting the Days Sales Outstanding to within the parameters you find acceptable.
4. Staff recruited or trained effectively to maximise the collections performance.
5. Order to Cash process reviewed and updated to remove bottlenecks and reduce queries.
6. Creating a robust Credit Policy and implementing a Collections process that is built to succeed.
7. Anything else you have identified as a red flag.

End outcome

For every Customer we have worked for, provided we have been introduced to them in time, the outcome is the same:

• The Funder who introduced us gets to onboard them as a client, usually within 3 months of our instruction.
• As we have engaged and been paid directly by the Customer, it has cost the Funder nothing in most circumstances.

What we do:

• Only disengage when all parties have agreed.
• Keep in touch to make sure everything goes smoothly.
• Be ready to help again if required.
• Have an in-depth knowledge of the business should the Funder require any ongoing support with their client.

Download the full guide

For more information on how you can fix the ledger challenges and make the unfundable client a fundable one, please feel free to download our full guide here:

How can we help?

Remember that we are the experts in this field and we are more than happy to help you with any issues you may have.

Feel free to contact us for a no obligation chat in total confidence, or arrange your Free Debtor Collateral Review to find out your Position. 

Call us on 0845-6385256 or email info@credebt.co.uk