The Industry - Wholesale Food Manufacturing
We recently financed a south western Sydney health food manufacturing business.
The clients incumbent bank were providing a debtors facility and a term loan. The bank could offer no more financial support when the client needed to pay a demanding creditor.
The client then lost a major customer representing 25%of their annual turnover. The reduction in turnover resulted in major cash flow distress but the directors were determined to make the business work. Unfortunately due to the reduced cash flow the bank credit policies were not a good fit for the changing circumstances.
Through a finance broker and Australian Invoice Finance, a new facility with 85% advance rate and high 50% concentration level was approved on the debtors. We repaid the bank debtor facility and term loan for the client.
The result is a happy client in manufacturing. The new cash flow facility improved the clients potential for growth, paid creditors in a timely manner and restored confidence. This was the finance broker’s first factoring experience the summary feedback from the broker was the process was “simple and efficient”.