Client story
The Manufacturer Now Wholesaler
Short answer
A fourth-generation manufacturer turned wholesaler used a six-month short-term loan to clear its tax debt, which allowed new funding for domestic operations and exports to go ahead.
Annual Turnover $8,858,000
The Problem
This fourth generation iconic Aussie company has endured the difficulties of the decline in the manufacturing industry in Australia. As such as part of a three year strategic turnaround, the business when from a manufacturer to a wholesaler –essentially outsourcing the manufacturing of their products to China, Indonesia, and Spain. However, changes to their funding arrangements required them to payout their tax liability to meet the covenants of the proposed facility. The business had been in a loss making situation for 2 years, and not bankable, at this stage.
The Solution
The CFO and MD approached PFBS for funding options. A short term loan over a 6 month period, was the ideal solution. Whilst this type of facility is expensive it was not as expensive as the ATO GIC.
The Outcome
This short-term loan enabled the business to payout their tax debt and onboard their new funding arrangements, which were crucial to the businesses’ domestic operations and export opportunities.