Industry: Food Production and Wholesale.
Facility Size: $750K.
Background: After purchasing an almost dormant food wholesaling brand in late 2014, the director of this new business wasted no time moving from stagnation to expansion. Utilising previous knowledge of, and experience working with, large retailers this food producer quickly introduced and placed product into most of the major supermarkets including Coles, Woolworths and Metcash. Practically overnight the majors decided that they wanted to stock the business’ quality produce in over 200 stores collectively.
The business went from a $2M business, to a business with turnover forecasts above $7M for the next 12 months. Handling that kind of increased volumes, together with managing fickle payment terms synonymous with major retailers, meant cashflow was obviously going to be an issue. Prior to meeting with FactorONE, the client began to think they would have to slow things down and decline new orders.
We were able to provide a debtor finance facility with ample headroom to fund this significant, sudden growth. Our client can now say, ‘yes!’ to every order they receive, confident that they will have 80% of the value of every invoice within 24 hours of delivering the goods.
