Steel supplier gets Full Service Invoice Discounting
Finance solutions for the construction sector can be tricky to solve. An upcoming steel supplier based in Sydney was finding keeping on top of accounts payable and cash flow a challenge. Read how Cashflow Finance met their needs with a full service solution.
There is a huge amount of steel and concrete used in larger construction projects across Australia. With the skyline of Sydney changing rapidly there are plenty of opportunities for construction businesses. Our client has a business supplying rebars and also labour to install the steel prior to the concrete pour.
Working with the leading building companies nationally, the business has a range of suppliers. Whilst good for business, this does also mean that there are some challenges in handling accounts payable and receivables. With a current arrangement through their local accountant, the business owner could see this was not scalable.
The Cashflow Finance solution
Various invoicing options could be provided for this business because payments are invoiced on job completion and not for work in progress.
A full service facility was recommended to enable accounts and collections to be provided as a service helping as the business expands.
Trade credit insurance was put in place to mitigate risk on the debtor book.
This business now has a facility in place and is looking continue to expand with new opportunities and secure lines of credit.