Invoice Finance – Concrete Kerbing Company, Facility $1,000,000
Invoice Finance – Resurfacing Company, Unlimited Facility
Our client had been offered a number of large contracts but couldn’t accept them because his customers all required 30 day payment terms.
This reduced his ability to pay his employees on time.
When he spoke with us he had become dispirited and was considering returning to work for his old boss.
We could see enormous potential in this business. We liked his customers and agreed to finance his invoices to them as soon as they were issued.
The invoice value was in the vicinity of $100k and occasionally more.
We were able to provide him with 80% of the value of each invoice upfront which allowed him to pay his staff and meet overheads.
Because our facility was able to grow with his business, our client became confident enough to tender and bigger contracts.
Within 12 months he had doubled his turnover.
This is a great example of how invoice finance can help a business to grow.
Invoice Finance – Engineering Company, $150,000
Our client was involved in the construction of a major facility for a well-known multi-national.
He had completed his month’s and issued an invoice for $150,000.
However, his customer’s payment terms were 60 days end of month.
Our client didn’t enough money in the bank to pay his staff. It was a nightmare scenario.
We were happy to help.
The customer was a large company with a strong track record of payment.
The project manager was able to confirm that the job had been satisfactorily completed that and the company had approved the invoice for payment on that date.
Within a few days of speaking with us we were able to provide our client with $120,000 which was more than he needed to pay his staff and meet other overheads.
The client was very happy with the result and although he did not require our services on a regular basis he used us whenever he hit a sticky patch.
This enabled him to complete the 12 month contract and win another.
He ended up working with this customer for nearly three years.
Supply Chain Finance – Construction Company, $2 million Facility
Our client had suppliers on standard 30 day terms, though many wanted shorter terms to deal with their own cash flow issues.
While the client was happy to oblige the shorter payment terms hurt his business and implementing a strategy to pay just a few suppliers was time consuming and expensive.
We provided an off-balance sheet Supply Chain Finance (SCF) solution allowing suppliers to opt-in for early payments as and when they needed.
When the supplier chose to receive an early payment, a small discount fee was deducted.
The client was able to extend payment terms to 90 days.
Over 30 percent of the suppliers opted for early payment and engaged with the discount program seeing it as a positive initiative.
Our client was able to better manage its working capital, take advantage of supplier discounts, and smooth out cash flow cycles by extending its term when needed
Trade Finance – Glass Importer, $100,000 Facility
This well-established glass supplier to the construction industry had limited working capital with most of its funds invested in machinery.
Despite a great reputation, its growth was hampered by lack of capital
The company was fully leveraged with its bank which had declined further assistance
Using some of the machinery as security, we provided a $100,000 revolving credit line that the client could use when required and which only attracted fees on funds used.
With the facility in place, the client embarked on a sales campaign that resulted in increased orders.
The facility enabled the business to pay deposits and the balance when required using its own cash reserves to keep its production line running longer to meet the extra demand.
1300 430 076
P.O. Box 1230
40 Park Rd
Milton, QLD, 4064