Case Study
Computer Sales
- The Italian subsidiary of the worlds largest direct computer sales and IT distribution company had cashflow difficulties due to their customers payment terms varying from 30-120 days.
The result was a flexible funding solution, which has enabled this company to develop its business where cashflow was previously holding it back. GE Capital, Italy were able to provide a full Non Recourse Factoring agreement, allowing the client to credit limit all debtors over 30 days.
The client now benefits from a reduced turnaround from order to payment and with full accounts management and administration performed by us frees up more valuable time to concentrate on the development of the business.
The majority of customers are domestic small/medium size businesses with payment terms on a 60-90 day basis. Some of these customers were requesting a further 30-60 days extension of payment terms.
We provided a Recourse Maturity Factoring agreement combined with a 30-60 days extension of payment terms to the approved debtors.
Our funding solution has resolved their client's cashflow requirements and also met the customers requirements of an extension of payment and they look forward to sustainable growth in the future, safe in the knowledge that our funding is growing with their needs.
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