News

IFG Wellington is working with a building company that has in the past undertaken work in the domestic market and as a result has received payment for work as and when the work has been completed. Cash flow has therefore never been a significant issue.

However, in order to provide diversity and a greater level of continuity of work, they have recently secured contracts for building and maintenance of commercial properties. In terms of standard business practice, they complete the work involved on the properties, issue the invoice and wait for payment from the companies involved.

While payment of the invoices is assured, the delayed timing of receiving the payments has created cash flow issues for the business.

Their Bank has not been able to provide any further credit to the group so referred the business to IFG Wellington who are working with the business to put in place an invoice discounting facility, so that as and when required, they are able to quickly turn some of their outstanding invoices into the cash they need to manage and grow their business without adversely impacting on their new commercial business relationships.