specialised manufacturing

requirement

$3,500,000

facility

Debtor Finance, Trade Finance & Equipment Finance (secured by the business assets)

client background

A 20 year old business based in Brisbane had their sales volumes decimated by Covid-19, with sales down up to 90% in some months as their client base deferred expenditure. This resulted in good historic profitability being replaced by a significant loss in FY21. The June quarter saw the business rebound, with July continuing the trend of improved performance. Re-entering a growth phase, the client needed working capital access.

client challenge

The business contacted Moneytech seeking working capital support to help fund the working capital need caused by the strong rebound in sales. A large part of the business cost is wages, so they had limited capacity to have supplier funds much of the working capital cycle. In addition, the poor trading in FY21 saw the client lose the support of their current bank, so a time urgent solution was required. Finally, the ledger included some milestone based invoicing.

moneytech's solution

Moneytech provided a $1.5m disclosed Debtor Finance Facility at a 70% advance rate, and $500k Trade Finance Facility, both supported by Stage 3 of the SME Government Guarantee Scheme. A $1.5m Equipment facility was also provided. This allowed the client the confidence to grow and continue to meet their commitments. The client was very pleased that we could look at the business on the forecasts that were supported by solid assumptions and good recent monthly performance.

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specialised manufacturing

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