Timing equals profit

For CCD, Stock Finance was an attractive solution to finance the period of time between stock arriving in New Zealand and customer payment. But as Doug Chetwynd, notes – initially it didn’t seem feasible due to the complex nature of the business structure.

“I couldn’t see how it would work given our Joint Venture structure,” says Doug. “But Jeff and Dave from Fifo Capital could see a solution right from the start. They asked for a bit of time to work through the detail and came up with a seamless process – solving a key business need for us.”

CCD is a distributor and online seller of high quality goods including consumer electronics and home appliances, and import just under 200 product types for customers in Australia and New Zealand.

For large orders of $70,000 to $80,000, CCD use Trade Finance with Fifo Capital to finance the period of time from when the goods are in transit, seven days out from arriving in New Zealand (at which time, full payment is required), to when client payment is received (up to 30 days).

With a clear and straight-forward Finance process now in place, CCD are able to confidently price in the cost of finance to the cost of goods to their client – ensuring profit margins are both protected and maximised.
“Flexibility for us essential. It’s important that the finance kicks in as close to Auckland as possible – it has an impact on profit margins,” says Doug.

“Things happen in transit and sometimes goods are delayed. With Fifo Capital I can change the date the finance is needed with no hassle, ensuring that we don’t pay for finance for longer than we need it.”

CCD have been working with Fifo Capital for six months and on average utilise our Finance service monthly.

“Fifo Capital have been incredibly helpful. They really know what they are doing – in fact they even highlighted that we had in insurance gap during transit; something which left unresolved could have been a very costly issue for the company.”

“I’d highly recommend using Fifo. Their rates are competitive; their turnaround is incredible; you can get hold of them without delay; they cover all basis. Basically, they’ll get it done.”

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