Here’s how short-term invoice finance helped an industry legend avoid embarrassment and rebuild his business.
He planned to buy the equipment overseas and rent it to the builder for the duration of the project. The job would make a lot of money.
But, the industry veteran was deeply worried. He had undertaken to supply equipment he didn’t have. Neither did he have the cash to buy it!
When he came to us his business had only one existing customer – albeit a very good customer – a mining company that paid very well to rent heavy machinery.
Hoping to replicate this success, he didn’t hesitate when approached to supply the company building the residential tower.
He was convinced he’d get funds for a second lot of equipment. After all, he would be making a fortune from both jobs.
Unfortunately, the bank didn’t see it that way. Neither did any other lender. They wanted assets to secure the loan and his assets were already tied up.
He came to us very late in the piece with the start date for the tower drawing closer.
To fulfil his obligation, he needed to travel to China, buy equipment and import it into Australia.
Here’s how we helped.
Harry’s contract with the mining company allowed him to submit an invoice each month with payment in 30 days.
Harry couldn’t wait that long to get to China, so he offered to sell the invoice to us.
We were able to approve the transaction very quickly and Harry was on a plane to China two days after we advanced funds.
Within a week, he reached an agreement with the manufacturer, placed a deposit on the equipment and arranged for shipment to Australia.
The following month our client sold us another invoice. This allowed him to complete payment for the equipment and meet all outstanding shipping, storage and import costs.
He was able to do all this and satisfy his ongoing business commitments.
He met the the deadline for the start of the residential tower.
He has since tendered and won a third contract. Once again, because of timing issues, he asked us to fund the deposit on the equipment. Once again, we were able to help.
However, because of the money he is now earning, he was able to meet all other costs from his own resources.
After a few short months, business is booming. It was good to help our client get there.
He knows that if he ever needs our assistance again we’ll support him.