The industry: Telecommunication Labour Hire
The Australian Invoice Finance team would like to welcome their new client based in the northern suburbs of Sydney who provides telecommunications labour hire services for their customers. These customers are the businesses that put the NBN and other telco services into your businesses and homes.
The business is well organised with a very technical Director who embraces change and technology to deal with processes and communications. The Director is one of the leading millennials in this type of service sector.
The telecommunication sector like in many industries is most suited to invoice finance due to the extent of labour hire services as these businesses have large wage and input costs to deal with while waiting for their debtors to pay.
What is happening:
The business was rapidly growing, and the Director was unsure how to finance the growth. They approached their bank but did not have the security or the financial position to meet the strict bank criteria for funding. So, an overdraft or loan was not possible.
The customers of the business were demanding more services and purchase order numbers were increasing. The issue was how do you fund the sales if customer take an average of 55-60 days to pay their invoices.
The solution was to obtain Invoice Finance against the outstanding invoices of the business. This type of factoring finance will provide the additional working capital to support growth and fund upcoming sales.
The ability to demonstrate patience whilst the business was working through a number of issues were the key factors to this client choosing Australian Invoice Finance as their financial partner.