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Dear All,
I am not sure if this is the place That I can get an answer for my question as this is with regards to business I am running.
We are manufacturer of bespoke furniture. On the market for almost 3 years. We do have our own workshop, provide client with the advice, design, and while the design is approved creating the final projects from chosen materials, delivering and installing at clients place. Mostly residential but also commercial projects are part of our activity.
This are all bespoke products, made to measure. We are working close with architects, interior designers and other suppliers.
By UK law from the moment that the object is assemble into the floor or wall is owned by client regardless if the invoice has been paid.
This is why we require 50% deposit from the moment that the design is approved and we need to purchase any material to start the work. The remaining balance needs to be paid before delivery. The problem I am facing is cash flow as always remaining balance has to be supported with founds from other project for us to be able to finish and get remaining 50% from the client. So when it comes to the moment that one client is late with payment (even if I am not going to process with installation and waiting for the client to organize the money) my cash flow is affected as the money from other projects were used to finish the one which is facing delays with payment.
I have mentioned that this is relatively young company and we are not liquid enough to get finance from ordinary bank. I know about factoring and other ways of finance but does anyone can give me an advice who shall I approach. What I need is the finance for remaining 50% after client has paid deposit. Ideal situation is that client is not aware of finance involved. But also I have been told that banks will be interested in sponsoring my clients. Does any one knows who shall I approach?
Will be grateful for advice.
Best wishes
Magdalene
I am not sure if this is the place That I can get an answer for my question as this is with regards to business I am running.
We are manufacturer of bespoke furniture. On the market for almost 3 years. We do have our own workshop, provide client with the advice, design, and while the design is approved creating the final projects from chosen materials, delivering and installing at clients place. Mostly residential but also commercial projects are part of our activity.
This are all bespoke products, made to measure. We are working close with architects, interior designers and other suppliers.
By UK law from the moment that the object is assemble into the floor or wall is owned by client regardless if the invoice has been paid.
This is why we require 50% deposit from the moment that the design is approved and we need to purchase any material to start the work. The remaining balance needs to be paid before delivery. The problem I am facing is cash flow as always remaining balance has to be supported with founds from other project for us to be able to finish and get remaining 50% from the client. So when it comes to the moment that one client is late with payment (even if I am not going to process with installation and waiting for the client to organize the money) my cash flow is affected as the money from other projects were used to finish the one which is facing delays with payment.
I have mentioned that this is relatively young company and we are not liquid enough to get finance from ordinary bank. I know about factoring and other ways of finance but does anyone can give me an advice who shall I approach. What I need is the finance for remaining 50% after client has paid deposit. Ideal situation is that client is not aware of finance involved. But also I have been told that banks will be interested in sponsoring my clients. Does any one knows who shall I approach?
Will be grateful for advice.
Best wishes
Magdalene
