The industry: Security management services
The Australian Invoice Finance Team would like to welcome this finance broker referred client business based in South West Sydney. The client provides security and facilities management services for many companies all over NSW and the ACT.
The business has been operating for more than 20 years and had always struggled with cashflow. To secure a positive cashflow the client used a factoring facility, had a fintech loan ($100,000) and also a small bank overdraft facility ($75,000) which will fully utilised. Restrictions and uncommercial new processes on the factoring facility were imposed by the previous funder which resulted in the client losing a major customer and was on the verge of losing more. The bank and the fintech would not provide additional working capital to the business. The directors needed to re-organise the funding and get a new invoice finance or factoring lender. Thus, the client had to find another flexible invoice finance funder that understood the value of customer relationships and customer service. Most importantly the new funder needed to understand the client and how they do business.
Security and facilities services, one of the industries most suited to the benefits of invoice finance due to long payment terms and weekly payroll requirements. The business services included patrols and static guard services
What is happening:
Due to new processes imposed by the previous invoice finance funder in regard to customer contact, the client lost a major customer. The client was able to also refinance the fintech loan and overdraft with a term loan facility organised by the finance broker.
Australian Invoice Finance was able to offer the client a facility where customer contact is kept to a reasonable level with this finance facility.
The client will have a consistent working capital facility and can now consolidate the business without the concerns of cash flow. At Australian Invoice Finance we provide fast, flexible funding to our clients.