Our new client required funding to complete the building of their production facility and had approached their bank for an increase to their property loan, and negotiate an increase to their cash flow funding facility from an advance rate of 65% to 90% of the accounts receivable ledger.
The valuation placed over the directors property security did not allow for an increase for the building of the factory and the clients ledger was proposed to increase to 70% which was well short of their needs.
The client approached several factoring companies and again could not increase the advance rate beyond 72% due to concentration limits and the clients ATO position.
OptiPay proposed the following solution (s) which solved the client’s needs.
- Freed up the directors property portfolio;
- Established a facility of $780,000 per month;
- Approved an advance rate of 80% of total ledger (nil hold backs or fees deducted from the advance);
- Introduced a purchase order trade facility of $432,000 revolving thus allowing the client to pay their supplier within 72 hours of delivery of material;
- Non-recourse to the business;
- Nil property security.
The broker has secured funding for the property.
- A market first end to end trade and cash flow facility.
- Total cost to the client 11% pa.
Fully online and managed through OptiPayEx and linked to the clients cloud accounting package with automated reconciliation to the accountant.
“Get Tomorrow’s Cash Flow 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.
