Factoring (Invoice Discounting)
Industry: Importing/ Wholesaling – Fresh Flowers
Business Stage: Start up
- A business was started with the acquisition of cool rooms, initial stock and the payment of a rental bond for premises
- The purchaser’s available funds were depleted in the acquisition process, leaving insufficient working capital to begin trading
- Any banks approached for support declined to provide assistance on the basis that they would only consider lending after the business had an established track record
Hermes established a Factoring Facility for the business to receive up to 80% of the value of its sales in the week they were invoiced.
The business was able to finance importation and delivery of goods to launch the new enterprise and fund the on-going growth of the business in its initial start-up phase.