How do you get affordable finance when you’re so new you don’t have a credit history?
The challenge of speedy success
A fast-growing NDIS provider was referred to us with a problem that a lot of businesses would love to have…
They’d been established for barely 12 months and business was booming – but to KEEP growing they needed money to pay the subcontractors who served their customers.
The big problem was that their business was SO new that they didn’t fit standard loan criteria. They were stuck in a Cash Trap.
(What’s the Cash Trap? Here’s a quick video)
Their particular Cash Trap was all about cash flow – because they paid their service providers weekly – but then they had to wait for a month to get paid by the NDIA.
It’s a great business, doing great work for people living with disability – but the NDIA’s payment model was a big challenge to their growth.
Escaping the Cash Trap
The solution was to get them a Low Doc Line of Credit. And the Line of Credit that we found them wasn’t just any Low Doc Line of Credit.
Because they qualified for the Federal Government’s SME Recovery Loan Scheme. So we helped them put in their application for a trade finance facility and got them a Low Doc Line of Credit Credit based on a Trade Finance Loan.
The application was approved in just 48 hours, and they were off and running. It meant that they could pay their creditors (tr. their service providers) on time AND keep growing.
Thanks to the SME Recovery Loan Scheme, the Line of Credit they pay their subcontractors from is a fixed, 5-year facility capped at 7.5% AND they only pay for the money they actually use.
Are you facing a Cash Trap?
Do you want to grow your business – affordably? Could you use a loan that’s about as easy to apply for as a credit card?
If you have a turnover (existing or projected) of $700,000 then talk to us today.
You have until 30th June…
Technically, the SME Recovery Loan Scheme closes on 30th December – but the actual lenders are finance companies, and their Christmas shutdown will happen much earlier.
We estimate the 30th of June is the effective closing date – and getting in earlier will avoid the rush.
Find out how easy it is to apply for the scheme (about as much work as the average business credit card application) in this article.
Or just call us today – because this is an offer too good to miss out on.
How do you grow an engineering business through the COVID slowdown?
The challenges of trading through slowdown
A Civil Engineering Contractor caught in the Cash Trap was referred to us recently. Their business installs infrastructure that they need to buy inputs for.
(What’s the Cash Trap? Here’s a quick video)
Despite COVID they were growing – though their projects were running more slowly. They’d scaled up from one customer to multiple customers – but they needed to buy more stock so they could deliver their projects and bill their customers.
BUT the COVID slowdown meant that their jobs were slower to finish – which increased their costs AND delayed customer payments. So their liquidity (their available Working Capital) was severely reduced JUST WHEN they needed to buy more stock.
Escaping the Cash Trap
We put together a package of finance products that used a combination of Trade and Debtor finance to get them free of the Cash Trap.
https://finforbiz.com.au/finance-options/cash-flow-finance/
And it wasn’t just any finance. Once we’d worked out the best finance option for their needs, we helped them apply for their Trade and Debtor finance using the Federal Government’s SME Recovery Loan Scheme.
Thanks to planning, good advice and the SME Recovery Loan Scheme, they got the liquidity they needed to secure the stock necessary to complete their projects AND they’re in a great position to take advantage of the reopening. They’re back at work using the stock they bought – with
And the finance they’re using is great for their bottom line – it’s a fixed, 5-year facility capped at 7.5% AND they only pay for the money they actually use.
Are YOU facing a Cash Trap?
Do you want to grow your business – affordably? Could you use a loan that’s about as easy to apply for as a credit card?
If you have a turnover (existing or projected) of $700,000 then talk to us today.
You have until 30th June…
We estimate the 1st June is the effective closing date – and getting in earlier will avoid the rush.
Find out how easy it is to apply for the scheme (about as much work as the average business credit card application) in this article.
https://finforbiz.com.au/the-post-covid-cash-trap-and-how-to-avoid-it/
Or just call us today – because this is an offer too good to refuse. 0407 477 555
Martin Cattach
+61 407 477 555
Discussion on working capital and funding options:
https://calendly.com/martincattach/confidential-discussion-on-working-capital-requirements
