The Industry - Building Services Company
Australian Invoice Finance recently provided an invoice finance facility to a start-up painter in the building services sector. The client specialises in painting of commercial, industrial, government and new home structures.
The business had some fantastic contacts and clients that would see rapid sales growth, but they lacked the working capital to fund the significant labour costs and paint consumables that greatly restricted potential growth. It’s important to note that trade terms are 30 days EOM with many debtors commercially paying between 45-60 days (common for B2B sales). Unfortunately, there is no option for payment on COD terms with the customers.
After being knocked back by several funders (including their banker, a caveat lender and another factoring company), the company approached Australian Invoice Finance via the company Accountant. We took the time to really get to know the owners, understand their business model and could see that the business would be a success within the building services industry if only they had the funding or cash needed.
Australian Invoice Finance provided the business with a $1.5 million funding limit with funding at 80% of outstanding invoices with an increase in funding to 85% in 6 months available as an option to the client. The business is now turning over $1million plus per month with more new contracts on the horizon.
Another happy client funded with Australian Invoice Finance. Another Done Deal.