Our business specialises in steel fabrication for a range of industries including; construction, mining and petrochemical. Since the GFC we have steadily seen payment terms with our multi-national clients push out sometimes anywhere between 45 and 60 days. In addition to this, we have seen the banks become more and more conservative. Ten years ago, we had an unsecured line of credit available to us; these days to access a loan or overdraft you have to put your house on the line. This is a very risky position to be in.
For a small business like ours cash flow is critical. We have obligations pay our creditors and the wages of our employees. In some cases, we have a huge outlay upfront to do the job but don’t get paid ourselves for months.
We had to find a way of smoothing out our cash flow and met with Apricity Finance regarding setting up and invoice finance facility. We have now been with Apricity for a number of years and have a great relationship with them.
For me, the best thing about invoice finance is that you don’t have to offer up your house as security. You are not locked in and can use it as much as you need to. Invoice finance has allowed us to adapt to changes in the market, manage our cash flow and focus on doing our job.
“We just wouldn’t be able to exist without it. It allows us to pay our creditors and our wages on time – it takes the lumpiness out of our cash flow.” Co-owner & MD