A Done Deal #34

Austif 'Done Deal' logo showing the Austif logo with the words 'A Done Deal' placed diagonally across it.

A Done Deal

Industry:

Builder/tradesman – specifically carpentry fit outs and maintenance.

What’s happening?:

This carpentry business has an untenable ATO payment arrangement and is unable to pay tradesmen and trade creditors on time. Iit is unable to collect from debtors effectively and is planning to close the business due to one very large debtor with a high concentration regularly not paying on time. The business is not considered a bankable client and has no property security to offer any lender.

Deal done:

Australian Invoice Finance provided an invoice finance facility at 85% of debtors owing with full funding on the larger debtor. We provide some collections for the client and offer a full credit advice facility. The remaining 15% of the invoice value, less AIF’s fee, is paid upon receipt of outstanding invoices. This carpentry business now has money, control of the outstanding invoices and ample cash flow to trade forward with confidence.

The client is now meeting all outgoing commitments with the ATO, wage payments and all other trade creditors. The credit card balances are also now paid on time, saving on interest charges. A big bonus is that the director also gets the award points. As the client said, “I wish our accountant had introduced us to Matt (Erwin) from Australian Invoice Finance sooner. Life would have been much easier”.

Learn more:

Click here to find out more about how AIF can help your small business manage late payment of invoices.

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