Case Study: FinTech Client

Posted On: 14 Nov 2018

Invoice Finance Facility for FinTech Client

Deal Size £1.5m

A large FinTech company approached Knox Capital Solutions (KCS) seeking an invoice discounting facility to support their growth ambitions. The client required the funds to support the growth of their business, and whilst they had a fundamentally strong ledger, the deal presented a number of challenges, particularly as the FinTech sector has witnessed a number of successes and failures and is viewed as high risk for lending purposes.

Knox Capital Solutions initiated a comprehensive vetting process which included joint meetings with the client and potential lenders, before identifying a suitable firm who met the client’s specific requirements. The firm were already known to us from previous dealings and from   our network of experienced panel lenders.  They demonstrated a good understanding of the sector and provided the functionality to look at overseas ledgers.  These abilities along with a flexible approach, proved the deciding factors in why that particular invoice discounting firm was selected.

KCS were pleased to not only assist the client in identifying a suitable invoice discounting firm, but also in securing finance for the client without the need for Director’s personal guarantees, which was one of their key objectives.  In addition we were able to assist with the setting up of the funding line to expedite matters as the facility was urgently required.

We were delighted to be able to help this client achieve funding to support their growth ambitions.  Although generally a difficult sector for Invoice Finance, we managed to secure a funding line to satisfy the client’s requirements.

Positives:

  • Strong Overseas Ledgers
  • Client has proven success in the FinTech sector
  • Exact specifications known

 

Challenges:

  • Industry sector seen as high risk
  • Director guarantees not available
  • Time pressured

 

To learn more about how we have helped other clients, visit our case studies section