The FT reported that Petra Diamonds experienced a shortage of cash owing to a delay in the roll-out of its expansion programme, mining costs, and currency appreciation. Cash from operations therefore fell 10% but net debt (debt net of cash) rose 70%, and pre-tax profit fell 39%. Two debt facilities' earnings-based covenants were waived temporarily.
The shortage of cash inflow could be replenished to some extent by use of invoice finance, especially single invoice finance from Cash for Invoices Limited.
What is single invoice finance?
Cash for Invoices Limited offers single invoice finance (sometimes called spot factoring or selective invoice finance) - a type of debt factoring that has key advantages over conventional debt factoring and invoice finance: