The Industry - Recruitment & Labour Hire
The Australian Invoice Finance team would like to welcome their new client based in the western suburbs of Sydney who provides contracting labour hire services for their customers. The customers are all security and maintenance businesses and have recently secured new opportunities.
The client’s business who provides the labour or staff is well organised and has a dynamic Director who embraced the change and challenges of the first half of 2020. The Director is one of the leading millennials in this type of recruitment.
The security and maintenance sector like in many industries is most suited to cash flow lending or invoice finance due to the extent of labour costs causing cash flow issues. These businesses have large wage and input costs to deal with while waiting for their debtors to pay.
The business was steadily growing in recent years and the Director was unsure how to finance further growth. They approached their bank originally but did not have the security or the financial position to meet the strict bank criteria for funding. So, an overdraft or bank loan was not possible.
In 2020 this changed and new customers of the business were demanding more services and purchase order numbers were increasing. The issue was how do you fund the sales growth if customer take an average of 55-60 days to pay their invoices.
Obtain Invoice Finance or Debtor Finance against the outstanding invoices of the business. This type of finance will provide the additional working capital to support growth and fund upcoming sales.
Whilst the business was working through a number of issues our determination to assist and our patience were the key factors to this client choosing Australian Invoice Finance as their financial partner.
AIF provided an invoice finance facility with the ability to fund invoices 24 hours after delivery at 83% of invoice value. The cash flow problem is now solved for another SME business.
Invoice finance and debtor finance can help your business if you are selling to other business customers on credit.
Learn more about invoice finance and factoring