V4B Business Finance

Business loans for aged debt – Case Study

aged debt financing

With high levels of uncertainty and the rising cost of just about everything, businesses are facing tough times here in the UK. In particular, we have seen many of our clients building up larger amounts of aged debt. This is only natural as companies are waiting as long as possible to pay invoices. Unfortunately, that means money which should be in your accounts is tied up for longer, which can lead to issues with liquidity.

Aged debt is money that is owed to the business on invoices sent for payment and the time to having them paid is measured over 30,60,90 days so on hence being aged over time.

A well-established Solicitor we work with had this exact problem. They had plenty of clients and provided a great service, but their aged debtor’s list was the highest it had been in 15 years. That meant they had less working capital which prevented them from investing in the things they needed at the time.

We were able to arrange a working capital loan for the law firm that gave them the money they needed immediately. This helped give them some breathing room while they collected their invoices. It also allowed them to invest in the products and services that their business needed.

Loans For Companies With Aged Debt

Our expert advisors were able to get a total of £50,000 in loans for the solicitors, £15,000 more than they had originally requested. This was particularly impressive as one of the partners of the firm was retiring. That added some uncertainty which could have discouraged lenders.

We helped the business with its succession plan as well as working to understand its growth and development trajectory over the next two years. This allowed us to approach lenders with a full picture of the business and assuage any lingering doubts they might have. We also had a full list of aged debtors and the company’s financials. That information ensured we were able to get the best possible loan terms for our client.

Results

We were able to secure £50,000 in loans for the Solicitors firm. The loan term runs for 12 months, and we had the money in their account within 48 hours. This helped them secure their cash flow. The regular payments of the loan also allowed them to pay back the financing as their invoices come in. This ensured that they were not trading liquidity problems now for the same problems in the future.

Takeaways

Lots of outstanding invoices can be a real headache for any company. You know the money is coming, you just can’t get to it yet. This can lead many business owners to put off necessary investments. That can actually slow the growth of their company. Not only is that bad for business, but it is also frustrating. A backlog of invoices means you are doing lots of work and your services are in demand. That is the perfect time to grow.

If your business is stuck under a mountain of aged debt, V4B Business Finance can help. We will find you the loan you need fast with payments you can afford.

At V4B Business Finance, we can offer loans to help your business buy new equipment, upgrade your IT or refurbish your current premises. This allows your company to retain its own money for longer so it can invest in staff or new projects.

What would you purchase for your company if you could unlock the money straight away?

  • Fast access to funds
  • Flexible payment options
  • Dedicated account managers
  • Smooth your cash flow
  • No arrangement fees
  • Great customer service
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