Invoice finance and trade finance company, Working Capital Partners, have been placed into Administration. According to reports, the insolvency appears to be as a result of recent client fraud.
Working Capital Partners, were also members of UK Finance (the industry body for the asset finance sector. The company offered a selective invoice finance service, a flexible invoice funding service whereby clients can pick and choose invoices to raise finance against.
Working Capital Partners was also one of a small number of funders that could also provide trade finance or purchase order finance facilities.
Client fraud is one of the biggest challenges facing funders. Whilst financiers take extensive measures to try and prevent such occurrences, there are occasionally situations where fraudulent customers manage to evade the detection measures put in place by funders.