Invoice Finance for New Business with Impaired Credit – How Articus Delivered £300,000
Articus Finance successfully secured a £300,000 invoice finance facility for a UK construction firm with less than 12 months trading history and impaired director credit, enabling the business to expand and operate confidently.
Introduction
Finding reliable invoice finance for new business with impaired credit is often described as one of the toughest challenges in corporate funding. Lenders are naturally cautious when companies lack track record or when directors have adverse credit events. Yet these are precisely the businesses that need fast cash flow to fund contracts, take on new staff, and remain competitive. This case study demonstrates how Articus Finance designed a facility that overcame both hurdles for a growing UK construction company.
Client Background
The client, a UK-resident entrepreneur, operated a construction business that had been trading for less than 12 months. With an unhealthy credit profile for one director and rising invoice volumes, his lender options were limited. The need was pressing: his current provider capped the facility at a level too low for expansion. In addition, management found the provider’s systems cumbersome, eating time that should have been spent on projects. The business urgently required a larger, more modern invoice finance for new business with impaired credit structure.
The Challenge in Securing Invoice Finance for New Business with Impaired Credit
The barriers were significant. Few lenders are willing to entertain firms under a year old, let alone where impaired credit sits across the directors. Traditional finance was off the table. Even invoice finance providers often insist on two years’ trading. The client worried that opportunities would be lost and cash flow compromised without a robust solution. Our challenge was clear: secure meaningful invoice finance for new business with impaired credit circumstances while ensuring terms did not erode profitability.
Our Solution
We leveraged our lender network to identify providers willing to think beyond the immediate red flags. By creating a detailed forecast and demonstrating strong debtor quality, we gave confidence that receivables were reliable. This was critical in structuring workable invoice finance for new business with impaired credit solutions. The result? Approval for a facility starting at £300,000, scalable to £400,000, with simplified administration that removed operational bottlenecks.
Key Highlights
- Loan Type: Invoice finance facility
- Initial Facility: £300,000, scalable to £400,000
- Industry: Construction
- Trading history: Less than 12 months
- Challenge: Impaired director credit and lender reluctance
- Outcome: Scalable, efficient facility fitting growth trajectory
Why Invoice Finance Works for New Businesses with Impaired Credit
For many entrepreneurs, invoice finance for new business with impaired credit is often the only viable route to liquidity. Unlike term loans, which rely heavily on credit reports and asset positions, invoice finance pivots on the strength of debtor invoices. This means a young firm with sound client contracts can still access working capital. In this case, our approach turned problematic credit into a non-issue by focusing on invoice reliability and cash flow forecasts.
Wider Market Context
Across the UK, SMEs frequently struggle when they are new and directors do not hold pristine credit records. Bank lending usually requires extensive accounts, which by definition a new business cannot provide. Here, invoice finance for new business with impaired credit becomes a lifeline. By monetising invoices, businesses finance growth without waiting months for payments. Articus Finance’s expertise lies in aligning these facilities with sector-specific realities—from construction to logistics—and achieving approvals that others cannot.
Why Articus Finance Delivered
Our value is in negotiation and structuring. Lenders trust our process and presentations, which means that even in situations involving invoice finance for new business with impaired credit, we can unlock facilities quickly. For this client, we not only arranged a larger facility but removed the administrative burden that constrained his growth. This case illustrates how deep market knowledge and relationships translate into practical advantages for ambitious but challenged firms.
Explore Related Insights
- Working Capital Finance
- Corporate Debt Financing
- Asset-Based Lending
- Business Loans
- Development Finance
- Bridging Loans
- Property Refurbishment Finance
- Financial Conduct Authority (FCA)
Final Thoughts
This case stands as proof that invoice finance for new business with impaired credit is not only possible but highly effective with the right advisory partner. By focusing on debtor profiles and structured growth forecasts, Articus Finance overcame traditional barriers and secured a £300,000–£400,000 facility. For new companies constrained by credit history, the right structure opens doors to scalability, stability, and sustainable success.
