client background

A well-established business with 30 years of trading, the business was impacted by Covid-19 and the resultant level in sales. The business struggled with working capital and an ATO debt causing a credit pressure to emerge.

client challenge

Moneytech was contacted by the business seeking working capital support to clear aged creditors and significantly reduce the ATO amount outstanding. The client also had some progress claim invoices that are typically outside of the scope of a Debtor Finance Facility, which meant sourcing finance was a challenge.

moneytech's solution

Moneytech provided a $1m disclosed Debtor Finance Facility that was supported by Stage 3 of the SME Government Guarantee Scheme. This allowed the client to regain the confidence of suppliers by clearing aged balances. The client appreciated the Moneytech pay-as-you-go fee structure which only applies when the facility is in use, thus allowing close management of financing costs. Their financial modelling showed a reducing need for the finance in 12-18 months – the fee structure will see a reduction on fees when this occurs.