VPhase agrees £500k factoring deal

ENERGY saving products developer VPhase has agreed a £500,000 factoring deal to help it continue growing.

The Capenhurst-based AIM company said it and subsidiary VPhase Smart Energy had entered into the international factoring facility with its principal lender.

The deal will allow the VPhase to draw down up to 50% of eligible debts to a facility limit of £500,000.

As well as  providing additional working capital funding, the agreement also provides a credit management service which will help with both debt collection and provide credit protection of up to 90% of the debt outstanding.
 
Chief executive Rick Smith said: “The board is pleased to have secured this facility which provides further working capital as well as establishing debt collection and credit protection insurance.
 
“This £500,000, combined with the £1,35m the company had in cash at the half year, strengthens our ability to maintain the strong growth that the company is experiencing.”