This firm places temporary staff in the traffic management industry. Its workers are paid every fortnight, but its clients pay on 30 days end of month, so the directors were constantly juggling cash to cover wages.
What we did
We arranged a confidential debtor finance facility. It advanced 85% of outstanding invoices on day one, paying workers and clearing PAYG arrears. New invoices are uploaded weekly for an 85% advance, and the remaining 15% is released as each customer pays.
The result
Annual sales grew from $4 million to $6 million. Wages are met without stress, ATO obligations are up to date, and the directors can pursue new business with confidence.
Transport & logistics
Turning around a transport business after losing two major customers
Annual turnover $30 million, falling to $17.5 millionFacilities Trade finance and debtor finance
The challenge
The business lost two major customers to offshore competitors, and revenue fell from $30 million to $17.5 million in 2015. It could not scale down fast enough and had a severe working capital shortfall.
What we did
Working alongside the company's external accountants, we led a turnaround and moved the business to a new financier with a trade facility to buy fuel and a debtor finance facility. This gave the directors room to rebuild their strategy and operations.
The result
Over three years the business fully recovered. Every job was saved, premises were relocated to cut costs, and the client base moved to better, more profitable customers. It now operates nationally and is investing in new technology.
Manufacturer turned wholesaler
Clearing a tax debt so a new funding facility could go ahead
A fourth-generation Australian company moved from manufacturing to wholesaling, outsourcing production to China, Indonesia and Spain. Its proposed new facility required its tax liability to be paid first, but after two loss-making years it was not bankable.
What we did
We arranged a six-month short-term loan. It was a costly facility, but cheaper than continuing to pay the ATO's general interest charge.
The result
The tax debt was cleared and the new funding arrangements went ahead, supporting both domestic operations and export growth.
The owner of a firm placing temporary staff in construction and blue-collar industries wanted to move on to other projects. The CFO needed funding to buy the business.
What we did
We structured a new debtor finance facility. The incoming lender retired the owner's existing loans and provided proceeds to settle legacy obligations and give the former owner equity for their next venture.
The result
Every staff member was retained, and a manager of ten years became the owner. The facility gives the new owner confidence to meet payroll and statutory obligations.
Start-up wholesaler
Funding a start-up wholesaler without property security
Forecast turnover $750,000Facility Debtor finance
The challenge
As a new business with no property to offer as security, this wholesaler could not get traditional funding. Shareholder funds were not enough, and one shareholder would not inject more equity.
What we did
We arranged debtor finance that advanced 80% of outstanding invoices on day one to pay staff and suppliers. Invoices are uploaded weekly, and the remaining 20% is released as customers pay.
The result
No further shareholder capital was needed. The business is growing steadily, monthly expenses are met with less stress, and a trade facility is planned as the next step.
Renewable energy construction
Buying project materials while waiting on progress payments
Established in 1984, this firm builds and installs renewable energy farms across Australia. It was winning medium to large contracts with major builders, but long progress-payment terms made it hard to pay suppliers.
What we did
We arranged a trade finance facility to buy raw and finished materials, with 120 days to repay, matched to the project's stage payments. Shareholders no longer had to keep injecting capital.
The result
The business is thriving and competing strongly in its industry. It wins new contracts with confidence, and its trade lines grow as its trading record builds.
Former manufacturer
Restructuring several lenders into one funding strategy
Facilities Asset finance, trade finance and debtor finance
The challenge
Founded in 2006 as a manufacturer, this business had to reinvent itself when its industry declined. With several lenders, changing infrastructure and new statutory obligations, it needed to consolidate its finance to compete.
What we did
A long-standing client, the MD asked us for a funding strategy to match a three-to-five-year plan. We brought in a new financier to retire several existing lenders, with three facilities: asset finance against unencumbered plant and equipment to clear aged creditors, trade finance with 120 days to repay, and debtor finance for wages and trade repayments.
The result
Cash pressure eased and the CFO gained control of the budget. Paying suppliers up front earned new discounts and lifted gross margin. The directors now spend their time on customers instead of juggling cash.
A boutique manufacturer founded in 2001 made losses in its first five years after over-investing in equipment, staff and premises. The banks would not lend, and shareholders were tiring of propping the business up.
What we did
We arranged debtor finance secured against the receivables ledger. Customers were major department stores on 60-plus-day terms with large discounts and rebates, so we worked with the financier to set the right advance rate.
The result
Shareholder loans were no longer needed and the business was right-sized. The facility transferred to new owners on sale, and the business grew into a profitable brand known nationally and internationally, still using debtor finance.