News

A longstanding client of IFG in Wellington recently experienced an event which threatened to adversely affect their business operation.

The client invoices the previous month with payment due on the 20th of the following month. Their major customer, a large national entity recently advised the client that they were changing their payment terms and would now commence paying the client's invoices on the 1st of the following month. i.e. effectively delaying payment by approx 2 weeks. This delay in receipt of invoice payment proceeds would create a significant issue with respect to the client's cash flow position as the payment of weekly wages and other costs of business could not be deferred until payments were received.

Fortunately the client has been able to use the IFG Invoice Discounting Facility to continue to generate the additional working capital required to ensure the business is able to continue to operate without disruption.