The client designs and constructs bespoke generators to the construction and underground mining sectors.
Background
The client had recently been awarded a tender which required an increase for overseas components and domestic partner contribution for the accommodation of the complete project, plus there was a requirement for overland delivery using Australian heavy haulage to site installation.
• Import and logistics – 60 days from purchase order.
• 30 days value add construction.
• 14 day delivery and installation.
Payment terms
• 20% of delivered project on execution of the contract payable 30 days from date of issue.
• Balance paid 30 days after installation sign off.
Project value $5.85M over 7 months.
OptiPay was competing against a first-tier bank, three factoring companies and one second tier finance company.
OptiPay was awarded the funding. Why?
The OptiPay solution for our client was:
1. Established a trade import funding facility (no money contributed by the client);
2. Established a rolling facility to AUD$6M;
3. Fully OptiPaySecure™
4. Limited Recourse to the client;
5. No property security required;
6. Reduction in procurement and import supply costs by 18% (all international components);
7. Reduction in domestic manufacturing for specific components by 6%;
As a result of this solution, the effective cost of the entire facility was zero to the client, and it in-fact improved the client’s overall margins on the project, not to mention a drastic improvement in their working capital requirements.
This solution is a first in the Australian market and has come about as a result of the smart integration of all aspects of the supply chain, by the OptiPay team.
Thinking well outside the box created opportunity.
Talk with a OptiPay trained expert today. It is undeniable that funding solutions and product design is changing at a pace and the reality is, that unless you fully understand a client’s business and their needs you will not be in a position to offer the best solution.
When it is time to review your business funding arrangements, and cash flow needs, then a meeting with a OptiPay trained expert is time well spent.
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.
