A growing logistics company based in South Wales approached MacManus Asset Finance while reviewing their existing funding arrangements. The business had been operating successfully in the regional logistics sector and had built a strong customer base across South Wales and surrounding areas.
The company generated regular invoices for completed transport and distribution work. However, like many logistics businesses in South Wales, they operated on extended payment terms with customers, often waiting between 30 and 90 days to receive payment.
Over several years, our team had maintained regular contact with the director, building a strong professional relationship and gaining a clear understanding of the business’s funding requirements.
When their existing invoice finance facility came up for renewal, it presented the ideal opportunity to explore more competitive commercial finance options that could better support the company’s growth.
The Challenge
Despite running a successful operation in South Wales, the company had begun to experience challenges with their current invoice finance provider.
Extended payment cycles from customers meant a large portion of the company’s working capital was tied up in unpaid invoices. While this is common within the logistics industry, the existing facility was not providing the level of flexibility or support the business needed.
Cash flow pressure can quickly impact a transport and logistics company. Costs such as fuel, vehicle maintenance, driver wages, and operational overheads require consistent and reliable funding.
The director was keen to secure a new invoice finance solution that would release working capital faster and offer a more supportive relationship with a lender that understood their sector.
The company also wanted a funding partner that could scale alongside their business as contracts and workload continued to grow in South Wales.
The Solution
MacManus Asset Finance conducted a full review of the company’s existing invoice finance arrangement and explored suitable alternatives across our extensive panel of specialist lenders.
As an independent broker with access to over 60 lenders, we were able to approach several providers experienced in business funding for logistics and transport companies.
After assessing the company’s invoicing cycle, customer payment behaviour, and working capital needs, we introduced the client to a lender offering a more suitable invoice finance facility.
The new arrangement allowed the business to release funds tied up in outstanding invoices far more efficiently, improving day-to-day liquidity without taking on additional debt.
Invoice finance works by allowing businesses to unlock the value of invoices as soon as they are issued, rather than waiting for customers to pay. For logistics businesses in South Wales, this can provide a vital boost to working capital and help maintain smooth operations.
While asset finance, hire purchase, leasing, and plant and machinery finance remain popular options for funding equipment, invoice finance can be a powerful commercial finance solution for improving cash flow.
The Outcome
With the new invoice finance facility in place, the logistics company gained faster access to the working capital tied up in their unpaid invoices.
This immediately improved cash flow and allowed the director to focus on running and growing the business across South Wales without the ongoing stress of delayed customer payments.
Operational costs such as fuel, payroll, and vehicle maintenance could be managed with greater confidence thanks to improved liquidity.
Most importantly, the company now had a funding partner that better understood their industry and could support the business as it continued expanding within the South Wales logistics sector.
The successful refinance of their funding facility demonstrated the value of reviewing existing commercial finance arrangements and working with an experienced broker to identify better solutions.
Ready to Make Asset Finance Work for Your Business?
Partner with MacManus Asset Finance Ltd, an independent broker established in 2005, helping UK SMEs access tailored finance solutions. Our friendly, professional, and consultative team works across all industries and can guide you through hire purchase, leasing, and finance lease options. With access to over 60 finance companies and full FCA authorisation, we ensure your business finds the right solution for growth.
