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How Independent Finance Companies Can Work Together

Reach Commercial Finance were introduced to a local business that had gone through an administration and relaunch in the middle of 2015 and who Factored their debts with a Manchester based factoring company. They had supported the Directors over several years but had decided that time had come for them to find alternative funders.

The business was introduced to an associated finance company who agreed a facility however the client had £36,000 of HMRC arrears, a combination of VAT and PAYE, however the client was in the process of negotiating a time to pay agreement with HMRC.

Their offer was subject to the time to pay being agreed, unfortunately HMRC declined and wanted paying in full within the next 14 days. The deal was off.

They had previously worked with Excel A Rate and knew they had a variety of alternative products including short term lending which could be utilised to repay HMRC and allow their facility to be activated.

Client was visited on Friday 8th April and the directors advised what information was required in order to look at providing a facility. The information arrived in the office on Monday 11th April. By Wednesday 13th 2 facilities were agreed a 13 week advance for the VAT (£4,600) with weekly repayments and a 39 week advance for the PAYE (31,400) again with weekly repayments.

Documents were signed Thursday and HMRC paid off on Friday allowing them to take over the factoring facility.

Most lenders wouldn’t entertain this type of joint venture as they are too precious about protecting their clients for their own purposes rather than putting the clients’ best interests first.

Flexibility, finance companies working together and a can do attitude means a happy client with a new factoring deal and the HMRC burden off their backs, everyone wins!



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