New Plymouth Wholesaler Funds Business Growth With Micro Factoring
A New Plymouth wholesaler/retailer was referred to us by their bank in early 2011. This business had grown rapidly. They were rapidly exanding their retail operations and were also experiencing increased demand from their wholesale customers.
They were unable to secure further bank finance but needed increased working capital due to the extra demands on their resources created by the business growth.
We were able to come on board and fund their debtors from the wholesale wing. This has enabled them to maintain steady cashflow whilst they work through this growth phase. They will be able to wean themselves off this system in a few months time. They will then have grown the capital value of the business and the future profit stream, without sacrificing any equity in the business or accumulating a legacy of debt.
When businesses are going through growing pains, often cash flow is the most important issue. If you have the vision, a viable proposition and the drive to implement and succeed, but the only thing holding you back is the cash to keep things going whilst you work through the myriad of issues which confront every growing business, then
micro factoring may be the answer, like it was for this New Plymouth business
Once the system is up and running, the amount of administration time involved is minimal. In fact, for some businesses, if we are also providing credit control facilities and/or sending out invoices, administration time can be reduced, adding further value to your business.
When a business is in a rapid growth phase there are so many things for the owners/Directors to worry about and spend time on, that you simply don't need the headache of worrying about cash flow.