A BOLTON firm which specialises in business rescue, recovery and funding has expanded.

Ideal Corporation Solutions says many good businesses fail from a lack of cash — rather a lack of profit.

Now, it has launched a new invoice financing service, Ideal Invoice Finance, on the back of requests from clients.

The company, at the Waterside Business Park, was launched in 2003 and now has 45 members of staff.

Andrew Rosler, managing director of Ideal Corporate Solutions, said: “We have been helping businesses and individuals for a number of years with financing solutions. We have seen an increasing demand from our customers for this service.

“Many businesses fail from a lack of cash — and not from a lack of profit. With access to up to 85 per cent of the value of invoices, customers will now have the working capital they need to trade successfully.”

The firm says an invoice financing facility can be a much better solution, particularly for growing businesses, rather than a static overdraft or a reducing finance arrangement, such as a repayment loan.

It said invoice financing can allow firms to borrow based on the invoices owed by their customers. Firms can often get up to 90 days worth of credit based on customer ledgers.

If a firm is operating confidential invoice discounting (short-term borrowing to help with cash flow) then the customer will be unaware and the firm will chase its customer payments as normal. However, in cases of full factoring (when a business sells its invoices for cash to a third party, called a factor) then lenders may decide to chase the debt on the firm’s behalf.

Ideal Corporate Solutions said there are different techniques to each case, to make sure each client is financing its invoices within its own business constraints.

Mr Rosler added: “We understand how distressing it can be for clients to be faced with the daunting potential of losing their business. We believe our services give businesses the opportunity to explore all the options before a final decision is made.”

He said the firm does not simply put businesses into administration or liquidation.

The firm is a licensed insolvency practice with experienced in areas including insolvency, administration, company voluntary arrangements, members voluntary liquidation, creditors voluntary liquidation and business restructuring.

It often receives referrals from other professionals such as accountants, auctioneers, banks and solicitors, along with individuals and companies who have already been through the process.

The firm also holds seminars and business lunches with advice for sole traders, partnerships or company directors facing financial difficulty.