Factoring case provides regular monthly income for Network Partner
The Network Partner who submitted this deal to Brokerplan was approached by a domestic and commercial plumbing and heating contractors with a “high quality problem”. They had just won a number of new contracts, but due to the size of these and the terms agreed they now had a cash flow problem.
A factoring agreement for the monies that they had outstanding was deemed to be ideal but the clients wanted the ability to just spot factor those invoices they needed and so this was exactly what was arranged with a spot factor called Select. This wasn’t a set facility – as with a whole of book factor – but an agreement to support the clients with one of their clients.
This facility was agreed in May 2018 and every month to date the clients have used it with the fee income earned monthly varying from £675 to £3,181. In 10 months this one client, using one facility has paid out £19,905 in fee income for this Network Partner and it sees no sign of stopping – last month they received just short of £3,000
This was an instance where rather than arrange a single loan for the client a more flexible on-going facility was requested which had the added benefit of paying the Network Partner out not just a one-off payment but a monthly trail income. The clients and Partner continue to be happy with the flexibility of this arrangement!