Trading B2B firms whose net assets have just fallen

Why working capital is the way in

Invoice finance is a working capital product. It turns unpaid invoices into cash, and it suits companies that sell to other businesses on credit terms. When a company's balance sheet has become smaller, the sensible conversation is not about difficulty. It is about releasing cash that is tied up in sales that have already been made. A broker who frames it that way, with a clear view of how the product works, is welcome rather than intrusive.

The economics are well understood. Service fees run at about 0.25% to 3% of annual turnover, plus a discount charge on the funds drawn (ExpertSure, invoice finance rates). The broker earns on the facility, and a well-chosen client may renew it year after year. That is why a modest list of well-targeted prospects can matter more than a large one.

Sector matters. Invoice finance is most useful where companies carry large amounts of unpaid invoices: wholesale, manufacturing, construction, recruitment and business services. This page lets you concentrate on those sectors and the regions you cover.

What the signal means

A company appears on this page when its latest filed accounts show a marked fall in net assets compared with the previous filing. The data comes from Companies House and other official public records. For broker use, we focus on business-to-business sectors, because those are the companies with trade debtors that can be financed.

The accounts describe a past year. The year they cover may have ended well over a year before the filing, and each match shows the filing date so you can refer to it plainly.

What it does not mean

A fall in net assets does not mean a company cannot pay its bills. A dividend, or the sale of part of the business, can reduce net assets in a healthy way. It also does not tell you whether the company has cash pressure, has outstanding invoices, or already has a facility. You will not see its debtor book from this data. Only companies that file full accounts disclose detail on debtors, and most small companies do not.

Because of this, keep the first contact about working capital in general. Do not refer to the company's net assets or imply any difficulty.

How to use it

• Set an alert. Save a search for the debtor-heavy sectors and regions you cover and receive new matches by email.
• Filter by sector. Wholesale, manufacturing, construction, recruitment and business services are natural starting points.
• Reach by post or corporate email. A registered address is always available for a letter addressed to the director. Limited companies can be emailed as corporate subscribers if you identify yourself and offer an opt-out. Sole traders and ordinary partnerships need consent, and calls must be screened against the TPS and CTPS.
• Keep your promotions compliant. Your own marketing of finance products may be subject to FCA or trade-body rules. NewcoSignal is a data tool and does not clear any approach, so check your wording before sending.

NewcoSignal does not provide email addresses or phone numbers for companies. The registered office and a named director are what the public record holds, and a short, practical letter is a good place to start.