Is invoice finance possible with reciprocal trading?
Contra trading (or reciprocal trading) is normally an issue for debtor factoring companies as they rely upon the debts being collectable as security for the funding that they provide.
Where a client is also purchasing from their debtors there can be outstanding debts that the customer may offset against the payments that they are prepared to make in respect of the client's sales invoices.
Case study - invoice finance despite reciprocal trading
A partnership business, that are involved with lithographic printing work were seeking a recourse factoring facility for their business.
They had already been declined by other factoring companies as they had contra trading relationships with two of their major debtors.
Despite this, we were able to successfully find a debtor factoring company that were prepared to provide an invoice finance facility to the client releasing working capital that would improve their cash flow.
Who can help you find invoice finance with reciprocal trading?
Cashflow Acceleration Ltd, an East Sussex based company, offer a UK wide free independent quotation search service for factoring.
In many cases they have saved clients at least 33% of the cost of their existing or quoted invoice finance facility.
Call 01892 784183 today for a FREE independent quotation search.
