Since the Australian Space Agency was belatedly founded last year, interest in the country’s space sector has been rocketing.
The fledgling agency recently announced a “statement of strategic intent” with aerospace giant Boeing as part of plans to grow Australia’s space market from about $2.8 billion to $8.6 billion by 2030; and just last week, the biggest investment in space industry research development in Australia’s history was announced for the SmartSat Cooperative Research Centre (CRC).
While money is flowing in at the top level, contractors and smaller companies involved in this exciting industry will also be in need of funding.
The Need for Flexible Finance
A combination of manufacturing, infrastructure and technology, the space sector is set to benefit from the innovative and flexible finance solutions that already help contractors in those industries to grow and thrive.
If you are a start-up producing an innovative component for a satellite, or a software service for rocket operators, for example, it may be very difficult to get a business loan to scale up your production as more and more missions head for the launching pad, for example.
Certainly, there is strong private equity interest in the industry and bigger companies are often looking to swallow up smaller competitors who have the edge over them in a certain technology. However, for business men and women who have gone through the hard part of the entrepreneurial journey and now simply need enough money to get their product to the customer, that is often an unappealing option.
Investment rounds are also relatively slow – if you have an order, at the very least you need to accept it with confidence and give a delivery date. This is where cash flow financing comes in.
Cash Flow Finance for Contractors
In the construction sector, many businesses operate as sub-contractors in larger projects. This is a system that works well for everyone, as these companies can specialise and get really good at delivering their niche service and cutting costs in that area.
When they take on a job, these sub-contractors know that they will get paid for it. The problem is, they must first deliver. Many in the sector have therefore become adept at finding the best financing solutions to fill that short-term need between paying their own staff and suppliers, and getting their fee for the job.
Two solutions which are often used – sometimes in conjunction with each other – are invoice finance and supply chain finance: the first can provide the bulk for any invoice issued within days or even hours; the second allows suppliers to be paid up front at preferential rates while deferring the impact on the buyer’s cash flow.
Both these innovative business finance options are also used by manufacturers, and they would be ideal for the space industry too.
Financing the Future
Satellites and launch facilities are rapidly becoming just another part of the world’s crucial infrastructure: Australia needs to build its own version in order to stay competitive, and to do that it needs financing.
This should not just be big business finance, and solutions aimed at slow-moving companies that play it safe at the cost of growth and innovation. What is needed is a wide choice of advanced and flexible finance packages to match the exciting nature of this new sector.
Tim is already providing many of the necessary solutions, to clients across manufacturing and construction, as well as agriculture, wholesaling and other niches. Whatever sector you’re in, if you sell to other businesses, get in touch today to access the business finance of the future.
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.
