After winning a new customer that doubled their sales, the business needed a solution to fund the resulting working capital gap. They were offered funding with terms of 7 days and a 5% settlement discount.
Their broker identified this as an overly expensive solution and suggested finding another Debtor Finance Facility to fund the capital gap created by the increase in sales.
After reaching out to Moneytech, a $1.5m Debtor Finance Facility was implemented and supplier terms changed back to 30 days (end of month).This solution has seen an increase in profit of $200k p.a. for the business after allowing for the finance cost.