The Challenge
The client experienced a period of margin pressure and reduced turnover following increased competition in key regional markets, combined with refurbishment works that temporarily impacted sales. While losses were recorded in recent financial years, performance had begun to stabilise, with a return to profitability in the most recent quarter and improving cash flow driven by stronger product focus and additional rental income from subleasing.
The Solution
Fifo Capital provided a $1m trade finance facility to fund payments to key suppliers, allowing the business to maintain stock availability while executing its recovery strategy.
The facility was supported by director and corporate guarantees, all‑present and after‑acquired property security, and a second‑ranking mortgage over residential property, providing strong asset backing.
The structure gave the business the flexibility it needed without constraining day‑to‑day operations, while covenants were designed to support the turnaround period and ensure continued stakeholder alignment.
The Results
With the facility in place, the client was able to confidently fund supplier payments, support improved availability of higher‑margin product lines, and stabilise cash flow during a critical trading period. The solution positioned the business to continue its return to profitability while retaining future strategic optionality.
This case study highlights Fifo Capital’s ability to support established retail businesses through periods of market transition, providing flexible trade finance where banks may be unable to move quickly or support short‑term volatility.
Ready to maximise cash flow and fuel growth? Call us on 1300 852 556 today.
