INSUFFICIENT cash flow is by far the biggest threat to Australian recruitment agencies and the primary reason for business failure within the industry.
Our client is a Sydney-based recruitment service provider that had seen rapid growth over the past two years.
Their business places candidates within the heavy engineering and mining sector, offering clients permanent and interim recruitment services.
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The problem
The client was not immune to the challenges of running a recruitment agency. They needed to pay temporary workers weekly, yet in many cases, they didn’t get paid by their clients until more than a month later.
Pressure mounted even further as they won large new contracts.
As well as affecting the day to day costs of a business, the shortfall in cash flow was starting to block plans for future expansion.
The client was faced with a conundrum. Either they could look for alternative ways to fix their cash flow or start turning away valuable business.
The options
At the time we met them, the agency was waiting on two invoices worth more than $100,000. But they weren’t going to be paid for a further 30 days.
Due to their limited trading history, they weren’t able to secure an overdraft or a business loan.
None of the company’s directors wanted to use their family home as security.
And with outstanding wages quickly stacking up, there was no time to set up a long-term factoring contract.
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The answer
It took us three days to arrange the finance and, when each invoice was paid, they received the remaining 20% less the cost of funding.
The cash flow injection allowed the client to meet wages and take on more large contracts.
Most significantly, it helped them grow their business.
Find out more about flexible cashflow solutions for your business.
To speak to somebody from OptiPay, simply call 1300 694 686 today.
Who is OptiPay?
OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping small business owners solve cash flow challenges for over a decade and has provided $1.5 billion in business funding to more than 500 Australian businesses. OptiPay specialises in modern financing solutions such as invoice factoring, invoice finance, debtor finance, and lines of credit. OptiPay’s mission is to support business growth providing liquidity in as little as 24 hours, ensuring they have access to tomorrow’s cash flow today. This rapid access to funds helps businesses maintain smooth operations and seize growth opportunities without the stress of cash flow constraints. At OptiPay, we believe that healthy cash flow is the lifeblood of any successful business. Our commitment to helping businesses overcome financial hurdles and achieve their growth ambitions has solidified our reputation as a trusted partner in the business finance sector. Whether you are looking to stabilise your cash flow, expand your operations, or navigate financial challenges, OptiPay is here to support your journey with innovative and efficient financing solutions.
