The Engineering sector in Australia and in New Zealand has enjoyed a period of expansion over the past five years due to increased capital expenditure in the public sector. With almost 45,000 Engineering businesses in Australia (and almost 7,000 in NZ) competition is expected to increase. Businesses will need to invest in a highly skilled workforce and specialised systems to gain a competitive edge.
Certainly, a competitive landscape can be a huge opportunity for businesses looking to expand. However, the nature of contract work and long-term involvement in large scale projects can often lead to cash flow difficulties for the smaller operator.
We started out with one very substantial client forming the backbone of our business. This worked well, payment cycles and contracts were in place, and we were able to balance cash flow and workflow without any significant headaches. However, issues arose as we expanded into much larger scale civil works and infrastructure projects.
We found ourselves growing at such a rate that we were starting to stall. We were unable to take on a significant piece of business because we did not have the finance in place to support the sizeable contract. Our existing financier simply did not have the capacity to meet our needs and we were looking at contracting for the first time since the business began.
We reviewed a variety of invoice finance products before beginning our relationship with Apricity – none of whom were able to offer invoice finance at the scale we required. Apricity Invoice Finance is an ideal solution for a business working with Blue Chip clients. For us, having the facility in place has meant that we can not only function and deliver, but also continue on our strong growth trajectory.