Flexible finance has been the key to success for a small Tasmanian specialist labour hire company.

The firm has established a reputation as a valuable trouble shooting operation in the mining and energy sectors but rapid growth of the business put a strain on finances.

“It’s quite confronting to go from a wage bill for four people to having to find the funds for more than forty,” the director said.

“We need to pay our people as they work – either weekly or fortnightly, but we don’t invoice the client until the job is completed – and we get paid in line with normal trading terms, often 30 days end of month. That presents a real cash flow challenge for a small business.”

The solution was provided through debt finance.

“We were growing, quite rapidly, and we needed a financing option that guaranteed our cash flow and was flexible enough to grow with us.

“We could have gone back to the bank and increased our overdraft but they would have wanted bricks and mortar security; in other words putting our property in the facility. It just isn’t flexible enough.”

“From the outset it was obvious the debtor finance provider we went to wanted to learn about our business and work with us. They made the effort to understand the specialist nature of our services and the reasons behind our invoicing system, and then they designed a facility that worked perfectly for us.

“In terms of future growth, the possibilities are pretty well limitless”.