How We Helped a Mobile Commercial Tyre Company Unlock £50,000 Through Invoice Finance

In today’s fast-paced business environment, cash flow is the fuel that keeps operations running smoothly. For service-based industries, such as commercial tyre companies, where payments often arrive weeks or even months after work is completed, waiting for invoices to clear can significantly restrict growth and day-to-day operations.

That’s where invoice finance can make a transformative difference, and this is exactly how Principal Business Finance Limited helped one mobile commercial tyre company unlock its potential with a £50,000 invoice finance facility.

The Challenge: Cash Flow Bottlenecks Holding Back Growth

Our client, a successful mobile tyre company servicing fleets of commercial vehicles, faced a familiar challenge. While business was booming and demand was high, their working capital was tied up in unpaid invoices, some of which took as long as 60 days to be settled.

Despite strong turnover and loyal clients, the delay between completing jobs and receiving payment created a cash flow gap, making it more challenging to purchase materials, maintain vehicles, and meet new customer requests.

The business had plenty of work, but not enough available cash to fund that growth.

The Solution: A Tailored £50,000 Invoice Finance Facility

After assessing the company’s financial situation, Principal Business Finance worked with our panel of specialist lenders to structure a £50,000 invoice finance facility.

This facility allows the business to access up to 90% of the value of outstanding invoices almost immediately after issuing them. Instead of waiting weeks for payment, they can now unlock funds within 24 to 48 hours dramatically improving liquidity.

Once the customer pays their invoice, the remaining balance (minus a small lender fee) is released, completing the cycle.

This solution provided instant access to working capital, enabling the company to reinvest in operations, manage supplier payments, and confidently take on new contracts without the stress of delayed cash flow.

The Impact: Growth, Stability, and Flexibility

Since implementing the £50,000 invoice finance facility, the tyre company has been able to:

• Expand its mobile service fleet to meet increased demand.

• Purchase equipment and stock upfront without dipping into reserves.

• Take on larger contracts with fleet clients thanks to improved cash flow certainty.

• Build stronger supplier relationships, as payments can now be made faster.

The result? Greater financial stability and the ability to focus on business growth instead of chasing payments.

This transformation shows how invoice finance can bridge the gap between performing work and getting paid turning outstanding invoices into working capital.

Why Invoice Finance Works So Well for Service-Based Businesses

Service-driven industries like automotive repair, logistics, construction, and facilities management often experience payment delays due to credit terms or large client contracts. Invoice finance helps these businesses:

• Free up tied capital from unpaid invoices.

• Smooth out cash flow during busy or seasonal periods.

• Avoid the need for additional debt as funding is based on money already owed to you.

• Access scalable funding, with the facility growing as turnover increases.

For businesses that invoice other companies (B2B), this solution can be the difference between reactive survival and proactive growth.

Why Choose Principal Business Finance

At Principal Business Finance, we pride ourselves on connecting UK businesses with the right funding solutions to fuel sustainable growth. Our team of experts works with a wide network of accredited lenders, ensuring you receive competitive rates and flexible terms that align with your unique business needs.

Whether you’re looking for invoice finance, asset finance, or working capital loans, our goal is to remove the barriers to growth and help you focus on running your business with confidence.

Final Thoughts

For this mobile commercial tyre company, the £50,000 invoice finance facility wasn’t just about managing cash flow it was about unlocking the ability to grow faster, operate more efficiently, and take on opportunities that were previously out of reach.

If your business is facing similar challenges strong sales but slow-paying clients then it may be time to explore how invoice finance could help you move forward. Contact us on 01604217998, email info@principalbusinessfinance.co.uk, or enquire here.