The latest stats on how cashflow is impacting small business clients are alarming with 40% of businesses report their customers are paying late, 39% of businesses report their suppliers are reducing payment terms and 28% of businesses are paying their ATO obligations late 21% of businesses have been declined a lending product
56% of businesses offer early payment discounts
22% of business are unable to take on new work due to cash flow restrictions
It's timely to consider cash flow solutions.
We look at a recent case study using ScotPac's Discounting Finance Facility:-
Facilities: Confidential Invoice Discounting Finance Facility
Facility Size: $2,500,000
Annual Sales: $20 mil
Why Debtor Finance?
Debtor Finance has been utilised by the client for 4 years. Their bank decided to step away from debtor finance which restricted the clients access to cash. ScotPac was introduced as a replacement to the bank facility. The client soon found out that the bank had consistently restricted funding through limit size and concentration levels. Since going to ScotPac the client has seen an increase in approx. $1m in funding at similar rates. This has helped accelerate growth for the client.