06 Oct 2015 – Invoice Discounting: Case Study 2
CapX recently received an enquiry from a prospective client with quite a unique situation. The client has a large staff compliment, which in turn generates a hefty salary run on the 25th of each month. Although they did not experience payment problems from their debtors, who paid on time at the end of the month, their cash flow were almost depleted came to the 25th. Payments would only be received after the salary run, which left them with a serious cash shortage. They approached CapX for a solution.
Our invoice discounting product was able to easily resolve their cash flow conundrum. they now discount only one of their debtors’ invoices on the 24th of each month to ensure they have adequate funds available for salary payments. This debtor pays these invoices no more than 7 days later, which also keeps the costs of discounting to a minimum.
The client illustrates how specialised invoice discounting can easily overcome a cash flow deficit and alleviate any stresses surrounding salary payment runs for workforce intensive companies.