The food manufacturing and meat wholesale industries are well suited to invoice finance (also known as factoring or debtor finance). These businesses tend to have large wage and input costs to deal with while waiting for their clients to pay.
This Sydney based meat wholesale business had been growing strongly for 20 years. However, in recent years it had built up trade and ATO creditors through poor trading, old systems and outdated management practices.
This business was the subject of action by a trade creditor and it was not in a position to pay the creditor on terms.
The client was also working on a management buyout in order to achieve generational change in the business and corporate structure. Management was busy dealing with a number of serious trading issues. It had not received the support it needed from its bank or the prior invoice funder. However, financial support was critical to the operational and management turnaround strategy in play.
Another Done Deal
The existing owners (the parents) and the new owners (the children) required a flexible new approach to working capital. This was necessary to support the implementation of the turnaround strategy for the renewal and growth of the business.
Australian Invoice Finance worked with the client’s lawyers and accountant to achieve a successful business turnaround through a factoring facility. The business was given appropriate cash flow finance and also bookkeeping support to help it keep it on top of cash flow management.
Australian Invoice Finance’s factoring facility enabled the business to implement a turnaround strategy and trade forward successfully.
Another happy Australian Invoice Finance client. Another Done Deal.
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Find out more about how AIF can help your business take control of cash flow through a factoring facility.