Invoice factoring helped business go from strength to strength

21/07/2011

Invoice discounting helped free up much needed cash for a newly acquired business to enable it to grow and meet rising demand.

Businessmen Nick Bizley and William Davies bought All Aspects Management when it was in a Company Voluntary Arrangement. The buyers knew that the firm’s debtor book was full to bursting and they also paid for the firm’s valuable goodwill.

The purchasers only had £13,500 at the time of the takeover, but soon realised that there was plenty of demand for their services. However, without the debts owed to them, they had little to no money to spend on expansion.

The pair decided to turn to invoice factoring and told the Financial Times that this freed up enough money to help them move to a larger premise and improve its back-office tools and facilities.

After settling some of the debts owed to them, they were also able to pay off the loan they took out to buy the firm in the first place, within just three years. Their business is now going from strength to strength and Bizley and Davies are considering further expansion.