Case Study 1: Manufacturer of Food Storage Bags, Australia
Problem: Producing food storage bags for one of Australia's leading logistics company, our client found they needed additional funds to meet the growing demand of this customer. With traditional forms of finance such as overdrafts exhausted and an urgent order pending, they needed funds quickly to buy materials (cash on delivery). Initially, they needed $35,000 to see them through this new order.
Solution: Fifo Capital was able to free up the $35,000 from their debtors allowing them to buy the materials to meet the order. And, the entire process took 24 hours from the initial enquiry to funds in their bank account. The company continues to grow at a faster pace than they had ever envisaged.
Case Study 2: Excavation Company, Australia
Problem: Digging pipelines for some of Australia's largest construction and building companies our client found they couldn't start new projects as many of these customers were paying on average 50-60 days after the invoice was raised. This was causing problems not only when machines needed to be serviced and pay for fuel, but they were also having issues on collecting funds in time simply to pay for their staff. The first time they required funding they had $23,500 in invoices owed.
Solution: Fifo Capital was able to advance 80% or $18,800 of the $23,500 owed within 24 hours allowing the client to meet their immediate need of paying salaries and buy fuel. Two months later, they were able get further advances on other invoices allowing them to start a new project with one of Australia's leading developers. Thanks to Fifo Capital's innovative funding solution, the client was able to start other new projects. Today, the business has grown by another two operators and is making profits they had only ever dreamed of.
Case Study 3: Firewood Provider, Australia
Problem: Winter is the time of the year when people like their log fire heating. However, the wood needs to be harvested, picked and packed in the months leading up to winter. The first delivery of wood was made to the retailers - but the invoice terms were 30 days. When a cold snap hit in late autumn, the retailers needed more wood, but our client needed payments to be able to re-stock. And they now needed to pay for salaries as well as ship in the next load of wood. They had real cash flow problems and it needed to be fixed fast.
Solution: With the client's financial reserves exhausted, including lending facility through their bank, Fifo Capital was quickly able to ascertain they had good, reliable debtors. Within 48 hours we had advanced 80% of $27,000 worth of invoices . The client was soon able to meet the next round of orders as well as pay staff.
Case Study 4: Manufacturing Company, Auckland New Zealand
Problem: A manufacturing company with a turnover around $1,000,000 pa was experiencing excellent forward orders for their new product which had taken considerable resource to develop; the only problem now was the debtor ledger was increasing rapidly but the payments being received were not keeping up with the cash flow needed to now fund the business. John the owner turned to his bank for an increase in their facility but they could not assist as the security on Johns home and other assets and were not enough to support the additional funding.
Solution: Johns bank referred him to Fifo Capital, and within a couple of days John had selected some debtors invoices for which he would like to be paid. Fifo Capital paid him 90% of those invoices and the pressure was off. John continues to pass some larger debtors to Fifo Capital as he needs to, and his business continues to grow.