Resolving high-cost invoice financing: How we saved a small business £9k annually

A small business faced high funding costs and poor service from their lender, which led them to seek help from us. Aston Shaw stepped in, understood the client’s needs, and quickly sourced better funding options from various lenders and factoring houses. They also renegotiated with the original lender, securing competitive rates that saved the client over £9k a year. 

The problem

• Funding for the business was substantially high: The lender’s rates were high from the offset, but with the prospect of further increases on the horizon, the client was forced into a difficult situation. Interest rates had risen from 0.4% to 0.7% and monthly repayments had almost doubled.
• The lender was delivering a poor service: After being supplied with no information by the lender and numerous failed attempts to get in touch, the client was left feeling unvalued.
• Not being taken seriously by the lender: The client felt that they didn’t really matter to the lender, due to the fact they were a small business. This was having a devastating impact on the client’s relationship with the lender and was the tipping point that prompted the client to contact our team.

Our Approach

Our major priority is achieving the client’s specific requirements. We spent time with the client to fully understand their situation and shortly after he began looking for the best deals that could be arranged on short-notice, to reduce any unnecessary expense.

• Various funders checked: Through our vast experience and networks, we chased banks and lenders to find the most economical and beneficial deals for the client. We acquired a number rates and brought five lenders to the client. He did this in a very short space of time, all to the client’s benefit.
• Factoring houses approached: Justin also extended his search to factoring houses to ensure that no possible deal was overlooked.
• Original lender contacted: The existing funder was persuaded to re-evaluate the offer by comparing it to other potential funders. This was also done to ensure that no more time would be spent finding new deals as time was of the essence.

Our Solution

The client was given competitive rates from a choice of 5 funders. The list contained all the finer details of their offers to the client. The best offers were clearly brought to the client’s attention by us. Offers with the original funder were renegotiated, this meant that the least amount of time was spent sourcing funding.

Our client shared their experience with Aston Shaw:

“I turned to Aston Shaw midway through a review of our invoice finance costs and I cannot recommend them enough for this service. They took a huge weight off my shoulders and put my mind at ease from what had become quite a stressful situation. They understood our circumstances and went above and beyond what I would have expected to make sure we achieved our goal.

We had been paying some very high factoring costs on our invoices and being a small business we had very little time and resources to dedicate to fixing this, not to mention the lack of knowledge of what’s normal within the market. With their contacts and long standing reputation within the industry, they not only gained us some extremely competitive quotes from new introductions, but also from our existing provider which we hadn’t been previously offered. The agreement we eventually decided on will save our business over £9k a year, which is an amazing result”

If you have a financial dilemma, get in touch with us here.