SME Blog & News

Working Capital to pay suppliers - time to think outside the square

Working Capital is the lifeblood of any successful business regardless of how long it has been in operation.  Accessing additional working capital has historically taken the form of an overdraft from a bank, supported by property security pledged by the borrower or its directors/owners. In more recent times the Australian economy has seen an increase in the value of traded finished goods, much of which is imported from Asia and traded locally either B2B or B2C.  Many of the participants in this wholesale to retail market are heavily reliant on working capital across the supply chain. For many businesses their capacity to expand is limited without enough property (or any) to pledge as security to a bank.  With trade payment cycles in many cases extending up to 6 months from factory/supplier through to payment from client, solving this cash flow challenge can often unlock significant growth opportunities for business and in some cases ensure business survival. 

 To assist our existing and new clients solve for Supply Chain & Working Capital Solutions, we are devoting specific resources to this niche area, alongside our existing offerings of equipment finance, mortgage finance, insurance and car buying.

 We are specifically interested in assisting businesses solve working capital challenges which may be inhibiting growth or performance.  As a guide, we are interested in assisting established businesses with the following characteristics, amongst others:

 Importers who are required to pay substantial deposits to overseas suppliers in advance of shipment

  • Local wholesalers with COD or short payment terms to their suppliers (local or overseas suppliers).
  • Commercial construction businesses with multiple sub-contractor suppliers (resi & commercial builders, commercial fitouts)
  • Toy/Furniture/Household goods importers and wholesalers
  • Importers and wholesalers of general industrial supplies and equipment
  • Multi-site retailers of clothing, homewares and consumer goods.

 Please contact us to arrange for a no obligation assessment of your unique circumstances.  We have an array of market leading solutions from a wide network of leading working capital and supply chain financiers which complements our own in-house credit structuring and assessment skills.  In many cases we can tailor a non-debt solution which will provide the client with additional working capital and which won’t require a change to their existing bank facilities or add additional debt to their balance sheet.

 Phone (03) 8825 8888 or request us to contact you via https://www.smefg.com.au/contact

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