How a Haulage Company Cut Invoice Finance Costs by £20,000 and Gained Financial Flexibility with Restructured Invoice Finance 

Overview –  

A haulage company providing transport services across the UK had been growing steadily but faced high financing costs that were cutting into its margins. The company relied on invoice finance to maintain cash flow while awaiting client payments. However, their existing facility was expensive and rigid, limiting their ability to allocate resources effectively. Seeking a more tailored and cost-efficient solution, the company turned to us for assistance. 

The Problem –  

The haulage company’s existing invoice finance facility was costing over £35,000 annually due to high fees and limited flexibility. Additionally, the company’s credit insurance, bundled into the facility, was expensive and lacked the customisation their business needed, impacting their ability to reinvest in operations and support ongoing growth. The company required a solution to reduce costs and improve control over their financing. 

The Solution –  

We conducted a comprehensive review of the company’s financing arrangements and identified opportunities to reduce costs and increase flexibility. Our team proposed switching to a new provider with more competitive rates, reducing the company’s annual invoice finance fees by over £20,000. We also proposed independent credit insurance, arranging a separate credit insurance policy tailored to the company’s needs. This independent policy offered greater control and cost savings compared to the bundled coverage provided by their previous invoice finance facility. 

The Outcome –  

• The company reduced its financing costs from over £35,000 to under £15,000 annually, freeing up capital for other business priorities. 

• The independent credit insurance policy provided better control and a more cost-effective solution, aligning with the company’s operational needs. 

• The savings and improved financing terms created sufficient margins to reinvest in the business, supporting continued growth and operational efficiency. 

If you would like to see how much your business could potentially save by switching your invoice finance facility, why not contact us to discuss your options and take advantage of our free review service. Click the get a quote button or call us on 02921 900000.