Audits & Surveys Case Studies

How we prioritise risk

Situation: The funder asked us to undertake a routine audit believing their Client was billing then holding product for their debtors.

At the audit, our initial findings highlighted drifting days outstanding and missing PODs. Concerned at this, our auditor asked the MD for a tour of the trading premises to evidence the bill & hold. It quickly became apparent that there were no completed goods held on behalf of the debtor anywhere. On challenging the MD, he claimed the goods were stored off site 10 miles away – Visibility therefore offered to drive him to that location. Under pressure, the MD admitted pre-invoicing. Following a call to the funder, they agreed our proposal for increased invoice testing at the expense of routine template completion. A £250K fraud was uncovered.

How we layer your relationship with your client

Situation: On arrival at a routine audit, it was quickly evident that the directors had no wish to communicate with us as auditors.

At the audit, our initial findings highlighted a low effective Initial Percentage and significant cash pressure. We showed empathy to this position and encouraged the directors to discuss it with us. They did – Visibility listened until 8pm that evening. During this conversation, we established the Client felt they had no relationship with their funder, was talking to other providers and that there was additional security available. These points were immediately relayed to the funder, who within 48 hours restructured the facility using the additional security to release more cash to their Client. The Client was saved.

How we spot opportunity

Situation: Visibility was asked to survey a prospect on behalf of an established funder.

Our findings were that the Prospect’s relationships with their debtors were governed by contracts that would seriously limit available funding. At the exit meeting with the Prospect’s Directors, we were asked if there was a solution to this barrier to funding – Visibility offered to return for a 2nd day to produce an exit plan for the funder. The Prospect accepted and to cover the cost of a second day on site. Our review of the business, as opposed to the debtor book, identified that it owned intellectual property on which its debtors were wholly reliant. The deal was underwritten.

Audits & Surveys

Audits and business reviews are best undertaken by people who have been lenders themselves because only then will they have the experience to identify all risks, prioritise these on site and explain them effectively to the Directors they are working with

With over 75 years combined experience, Visibility is already established providers of these services to a majority of the invoice finance providers.

In addition to standard and high risk audits and surveys, we are increasingly being called upon to provide expert advice on companies with trade finance requirements or those whose relationship with their debtors are governed by lengthy, onerous contracts.

In turn, our unique approach is helping funders to write new business or retain clients which traditionally they may have been lost.