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 suppliersfor 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.
Invoice Finance to the Rescue
After multiple tours to Afghanistan, an Australian infantryman wanted to dedicate more time to his young family.
Before retiring from the Army, the soldier used his well-earnt savings to establish a plant hire company, providing wet hire haulage for civil construction projects in South East Queensland.
The new business started well, and the future looked promising. After only 4 months of trading, an unforeseen and expensive mechanical repair left the business short of cash.
The client applied for finance via our website. Within 48 hours the retired serviceman had funds in his account. His business was back on track, and he could spend a stress-free weekend with his family.
Helping to Get the Harvesting Done
Our farmers depend on farm hands to make sure that each precious crop is harvested at the perfect time. With most farms away from populated areas, many will turn to labour hire firms to help them find the best workforce.
For those labour hire firms, attracting good candidates means a strong emphasis on compliance and good business practices. Workers are usually paid weekly so this can put a strain on cash flow.
At busy periods this labour hire client can have over 50 debtors on their books, this can mean they need funding. So, when it’s peak harvest time, how do you keep on top of the cash flow?
Our QLD-based client decided to look for a solution and contacted Earlypay to see how Invoice Financing might help. The size of the business meant that Confidential Invoice Discounting facility could be put in place releasing up to 90% of the value of their unpaid invoices.
The facility is now up and running in time for this year's busy farming period.
NSW Transport Business – Driving to success
We’ve been able to support this Transport and Logistics business with a $1.5 million Debtor Financing facility.
When changes in their industry resulted in unexpected growth, they found themselves in a position where their current working capital solutions weren’t enough to support their cash flow.
Their broker introduced them to Earlypay’s Debtor Finance solution that was able to provide the access to more funds and bring their statutory requirements under control.
Their new facility now gives them the flexibility to continue to grow with the peace of mind that they will always have access to cash when they need it.
Helping a business recover from the impact of COVID-19 and bounce back
This business provides commercial transport and postal services and was negatively impacted by the COVID-19 pandemic. As a result, they had to reduce their staff.
Earlypay supported them with a $120k business line of credit facility. Our line of credit allows them to release the capital tied up in their unpaid invoices, helping them to cover their costs and keep their business moving.
With business picking up again, our finance facility will ensure they can access the cash flow they need on their road to recovery to meet their growth ambitions this year.
Working capital for growth
A family-owned baking goods wholesaler originating in 1860 has historically been self-funded via the director. They supply baking goods, pastry and cake decorating items catering to various bakeries cafes across the Victorian region.
In the time of rapid growth and increased demand, an opportunity to grow the product lines presented itself to the company. The business had no working capital facilities in place so they realised that to grow they will have to look beyond self-funding.
With a $500k Debtor Finance facility in place, they can release the cash flow tied up in their outstanding invoices and now have the working capital to expand their product lines and grow.
Finance for Civil Construction Industry
Andy runs a civil construction business. His business had recently won a new contract & needed funding to help with cash flow & capitalise on the opportunity.
With a $350k business line of credit in place, Andy can release working capital tied up in his unpaid invoices and have the cash flow & peace of mind of being able to service the contract & pursue future opportunities.
Our client has a business supplying rebars and labour to install the steel prior to the concrete pour.
Working with the leading building companies nationally, the business has a range of suppliers. Whilst good for business, this does also mean that there are some challenges in handling accounts payable and receivables. With a current arrangement through their local accountant, the business owner could see this was not scalable.
A full-service Invoice Financing facility was recommended to enable accounts and collections to be provided as a service helping as the business expands. This business now has a facility in place and is looking continue to expand with new opportunities and secure lines of credit.
How Finance helped this clothing wholesaler
A relatively young business that has only been trading for around 18 months. The business provides quality corporate workwear and PPE to customers across Australia.
They were growing but a large proportion of their cash flow was tied up in inventory and outstanding customer invoices. As a result, there was a shortage of working capital, which impacted their ability to maintain necessary stock levels to meet customer demand.
Earlypay provided the client with a $50k line of credit facility, which leveraged their unpaid debtor book to give them access to the cash flow needed to purchase stock and meet customer demand.