Optimising Cash Flow for Growth: Labour Hire Success with Earlypay and Xemplo
Background
An Australian labour hire company had experienced rapid growth off the back of their business success. With a handful of full-time staff and the growing demand for their services, they planned to expand the team to 20 employees to facilitate the fast growth rate of the business.
Challenges
Alongside this growth and newfound contracts with larger clients, the labour hire business faced cash flow challenges due to the extended payment terms it was offering clients. While the company initially operated with 14-day payment terms, this period was extended to 30-60 days for larger projects. This caused a cash flow gap for the company, as staff wages and other expenses needed to be paid weekly, but the time their clients were taking to settle their invoices was now averaging 65 days.
Need for Structured Invoicing and Cash Flow Management
The labour hire company had used a very manual method of managing paperwork, but as the business grew, they needed a more efficient and scalable solution for timesheet management and invoicing.
The Solution
To address these cash flow and operational challenges, the business engaged Earlypay for invoice finance which integrates with Xemplo for a timesheet, invoicing and employee management solution.
Invoice Finance
Earlypay's invoice finance immediately relieved cash flow issues by allowing the business to access funds from invoices as soon as they have been issued to their clients. This ensured the labour hire business could meet its weekly wage obligations without waiting 30-60 days for client payments.
Workforce Management
Xemplo implemented a comprehensive timesheet and employee management solution that fully integrated with Earlypay.
This integration came with several advantages:
- Streamlined processes: Automated and streamlined timesheet and invoicing processes reduced the administrative burden and errors.
- Faster access to cash: By ensuring timely and accurate invoicing, the labour hire business could automatically access funds through Earlypay.
- Increased operational efficiency: Enhanced coordination and communication between the business, employees and clients, leading to more effective resource allocation and improved overall productivity.
Results
The combined solutions of Earlypay and Xemplo transformed the labour hire company’s cash flow and back-office management. The company can now focus on its growth trajectory without the constant worry of cash flow shortages and the administrative burden of following up timesheets and manually issuing invoices. The implementation of a structured invoicing process, along with the timesheet and employee management system, paved the way for operational efficiency and sustainable growth.
If this story sounds familiar to you, please get in touch with us so we can provide an assessment of how we can help.
