Mining Truck

Funding Story: Logistics Business

Video Transcript

It’s a transportation business that is providing funnily enough transport services in the mining services sector and it’s an unfortunate reality in Australian commerce that the big miners tend to be slow payers cause they’re using all their suppliers and vendor providers as banks for themselves to enhance their profit. And many of our clients who are contractors to these big mining services, they want to do work for BHP, Rio you know, New Crest, all these big mining companies but they’re not seeing money for 90 days. So when you’re a transport business you’re paying fuel every single day, if you’re hauling those long hauls from Sydney to Queensland or just running a bob cat around on a mine site its you know, a lot of fuel and other expenses. So again this client came to us with a cash flow difficulty, they couldn’t grow the business, they want to take on a new contract, didn’t have the ability to take on a new machine. So we advanced them and they had $450,000 dollars of invoices sitting out there between you know day one and day 70 so we were able to release about $350 to them which they can use to do whatever they want but in this case he went and bought a second piece of machinery, paid out some old bills and was able to take on a new contract. If not for OptiPay he wouldn’t have been able to take on that new contract at all so you know he would’ve just kept struggling along with all the difficulties he was facing.

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