A Melbourne based commercial plasterer found themselves needing some innovative working capital options to buy critical materials to complete customer contracts…. Read More
Facility Type:
Supply Chain Finance
Facility Size
$350,000
Industry
Commercial Plastering/Construction
Location
Melbourne
Overview: Solving Customer Working Capital Needs
We quickly identified our client needed to get their fast track their supplies. Retail and construction sectors are bouncing back quickly after lockdowns ended.
Approach: How Fifo Capital Helped The Client
Fifo Capital set the client up with a $350k Supply Chain Finance facility to allow them to order more stock from overseas suppliers. They used our proprietary cloud-based platform to coordinate payments to their overseas suppliers at bill of lading and then deliver to retail as well as construction industry customers.
Key Features
- Instantly our client is able to fast-track their customer orders as the working capital allowed them to get access to materials sooner and freed up cash flow for wages
- The payment term extension period means there is ample time to receive and deliver the goods quickly and receive payments from the customers on an agreed 30-day term. In essence, reducing their net operating working capital requirement to zero.
Results: Innovation Leads to Added Benefits
Fifo Capital met their needs by providing enough capital to buy materials as well as secure subbie labour, then, extend payment terms out to 90 days. All in next to no time. Being genuine insurance-backed Supply Chain Finance also meant it was a non-debt solution.
- Through our online platform, the client is able to also extend their terms back to us, they pay a small interest charge each time they do. This helps them better manage capital expenses and manage cash flows with more certainty.
- Suppliers are paid on the due date – it’s that simple. Importantly, there is no need for their suppliers to use the platform. Our client simply up-loads their invoices and payments are made. They are then able to pay later.
- Client has a working capital solution has been a revelation as they’ve come out of the Covid-induced lockdowns in the eastern parts of the country.
Key Facts
01
Client selects the invoice for payment
02
Suppliers get paid on time
03
$400k revolving facility supporting the client getting their business back on track
Integrated solutions for your business needs
Multiple finance options gives you maximum funding
Invoice Finance
Fast track cash flow by turning unpaid invoices into cash. A simple way to grow your business and take hold of sales opportunities.
Trade Finance
Imagine local or overseas suppliers being paid COD without security and then you not having to pay for 120+ days. You can with Fifo Capital.
Supply Chain Finance
A unique facility which you can use to pay suppliers, and extend terms to us, freeing up working capital to use as and when you need.
Business Loans
Customised to fit your cash flow needs. Sitting alongside existing lending, it is a great way to innovate, grow and stay competitive.