Industry: Modular decking solutions
Turnover: $2,000,000
Facility size: $500,000
Background
This startup manufacturer and wholesaler of a unique modular wood decking product supplies several major retailers across Australia. The Director had recently bought out his previous business partner to start the business up, however due to the short trading history and the lack of available security he was finding it difficult to obtain the finance needed to grow the business.
Complicating matters was the fact that supplying into major retailers whose terms of trade ranged from 50 to 60 days from end of month was causing significant working capital shortages which was making it challenging to fund new orders and meet overheads.
Recognising that the working capital issues may put their supply contracts in jeapoardy the Director sought advice from their Accountant who recognised the business needed a flexible and scalable funding arrangement which didn’t require real estate security, and so referred him to FactorONE Invoice Finance.
Why FactorONE?
There was urgency around the application with a major supplier restricting terms of trade, and the Accountant knew that FactorONE would be able to respond quickly.
An invoice finance facility was established to free up the cash tied up in outstanding sales invoices allowing the business to meet new order.
With reliable funding in place, the business is now well positioned to continue supplying into its major retailers and take advantage of the opportunities to grow quickly and with confidence.
