The labour hire sector in Australia is worth $34 billion to the economy and encompasses four key sectors: mining, construction, commercial cleaning and large-scale solar installations. In New Zealand the labour hire market contributes $1.9 billion to the economy.
In some industry sectors, contract workers constitute almost the entirety of operations. This delivers reduced overheads and increased workforce flexibility; however, businesses may need to scale up or down quickly to meet demand.
A contract-based business model can mean that businesses face cash flow difficulties on a regular basis. A good example of this is having a significant workforce in place that is paid weekly or fortnightly, while the business itself waits 30 days, 60 days or longer for their own invoices to be paid.
Our business provides heavy industry electrical services and technical labour managed teams to oil, gas and power operations. As a third-tier business providing services to a second tier (who owns the primary relationship), we are mostly contract-based.
Because our business model is based on short term work and contracts, we encounter peaks and troughs in productivity. Our workforce is 50/50 casual and contractor with casuals paid weekly and contractors paid on the terms stipulated in the contract (either fortnightly or monthly), this can lead to cash flow issues for our business.
Our relationship with Apricity began after we found ourselves at a stalemate - unable to access the finance we needed to fulfil our obligations to our new client and grow our business. The Apricity Invoice Finance facility solved our dilemma straight away and allowed us to get back to work with the peace of mind delivered by good cash flow. We now have the ability to plan ahead without being afraid to take on big projects as we know our invoices will be funded.