Turnover:
$2Million.
Facility Limit:
$250,000.
Background:
The company commenced trading in January 2012 and was immediately very successful in growing its client base. However, with trading terms of 30 days from date of invoice, the company’s sales success meant that most of its cash was tied up in its growing debtors ledger.
This created a cashflow issue for the company as it had to pay its contract staff every 14 days, whilst its debtors were taking 30 days or more to pay them. On her accountant’s advice, the director approached FactorONE for a factoring facility to enable the company to fund their fortnightly payroll and to make their monthly BAS payments.
FactorONE approved the application within 24 hours and had the client’s facility documented and up and running in 4 working days.
