Manawatu Steel Erector Can Bid for Big Contract with Working Capital Partner
In Decemebr '05 a steel erector in the Manawatu region was referred to me by a major factoring company. At the time he had a cash-flow problem due to being a young business taking on fairly large contracts. He managed to get through this by persuading a major debtor to pay early. By March '06 however he had the same problem again. This time his debtors were not willing to help him out. We purchased a $25,000 invoice from him to solve his immediate cash-flow problem. We gave him $15,000 initially as the job was not quite ready for sign-off, and the balance of 90% of the invoice was paid the following week once the customer confirmed completion.
Further discussions led to this client understanding that he could use
The Interface Finacial Group
invoice discounting system, not just to sort out cash-flow crises but also as a back-up to enable him to pitch for even bigger contracts. In effect, Interface has become his working capital partner. Later, he secured himself a major contract with a government-backed University department to erect a research facility.
If necessary, he will
sell his progress payments to us
to maintain his cashflow through this project.
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