Invoice Financing Solution for a Sporting Goods Manufacturer

Recently, a manufacturer of sporting goods identified that they had a cash flow issue and needed assistance with funding to pay their suppliers.

They have around 200 retailers around Australia, and the terms of payment vary — on average, the retailers pay at 65 days from the date of invoice. However, they have outgoings such as wages and paying suppliers for components needed to produce the finished goods.

The solution Earlypay presented to them was to advance 85% of the debtor invoices at the time of invoices being issued to the retailers. These funds enabled them to not only pay the suppliers on time — which secured continuing discounts for on time payments — but also allowed for the company to continue to grow.