Case Study: Invoice Finance for Townsend Engineering

"We applied for a business loan but found invoice finance was just what we needed as we could advance the customers’ bills to pay for new projects!"

Ian Townsend

Business: Townsends Engineering Ltd

Townsends Engineering wanted finance to help manage cash flow and to allow them to win new clients who otherwise might have been lost to competitors. Invoice Finance allowed them to access cash from invoices in days rather than months.

This is Ian's story

“Before finding Funding Xchange we went directly to our Bank, but the time period to getting the actual money was just too long. It would have meant missing out on a big sales order. When we completed the application with Funding Xchange it was great to see there were numerous lenders and options available to us. Now we have the funding sorted we’re firmly on track to have the order completed before Christmas.”

About the business

Townsends Engineering Ltd. case study

We are a family run engineering company in Dover, Kent. Townsends Engineering has been operating for 3 years, and provides services which include electrical refits, fabrications, and industrial engineering.

 

Why was funding needed?

Townsends engineering Ltd. case study

We were getting a lot of interest from clients but couldn’t agree to all the projects without some extra funding. For many jobs we need to source a high amount of materials and then have the running costs such as wages as we complete jobs for clients – this puts a heavy burden on cash flow as jobs can run for weeks or even months before the client is making payments to us.

What type of funding was required?

Ian decided on Invoice Finance.

We know that waiting for the payment of invoices can have a huge burden on your business. Invoice Financing can solve the problem by getting early payment on invoices. Funding providers may offer payment of up to 98% of your unpaid invoices. You can select individual invoices that you want to finance or get financing for your full sales ledger. You can receive money within a day, meaning you don’t have to wait weeks or even months for outstanding payments.

Learn more about Invoice Finance.

Who provided the funding?

Market Invoice logo

Ian arranged his Invoice Finance with Market Invoice.

Market Invoice is a dedicated group of tech-lovers and industry professionals who offer savvy businesses a new type of invoice finance. They help clients to access funds tied up in outstanding invoices. Businesses can sign up, sell an invoice and draw down funds all in the same day. There’s no more need to wait 120 days for customers to pay.

We secured £83,000 in invoice finance, which has meant we are able to say ‘yes’ to all our clients, rather than scheduling or postponing them. Without the business finance we would have had to turn down some jobs, which would mean clients going to competitors and might mean we lost their future orders as well.

What was the result for the business?

“We took on a big job recently of fitting 100 metres of hand rail on a ship, as well as another job in a port for two very large gates. Neither of which we’d have been able to agree to without the extra funding.”

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