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.
- 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”