Invoice Finance in the Beer and Wine Sector

Key Questions the finance provider will ask

Who do you sell to?

Do you get a signed proof of delivery?

Things the finance provider will look out for

Sale or return

Does the customer have the aility to return any unsold product in return for a credit/refund? If so the invoice may not be able to be funded as there is no guarantee of payment.

Debtor Quality

Typically the quality of debtors in this sector is poor with the sales ledger often consisting of many small pubs and restaurants. This can cause issues with collectability and a potential increase of bad debts.

Quallity of POD's

As out of hours deliveries are common in this industry, the quality of delivery documentation of often low as no-one is availale to sign. Poor proof of delivery can lead to issues when trying to collect payments.

The above may result in offering lower prepayment levels. Improving the above areas will reduce costs and improve cash availablty.

Call us on 0845 643 4722 if you are n this sector and looking to improve your cashflow.