Family Transport Business Avoids Business Failure

Managing a small family business can mean that you get little time to yourself and sometimes you just have to trust (or hope) that employees will keep things running smoothly. When that doesn’t happen, it can be very expensive.

The Scenario

A family business owned 2 long haul truck and trailer combinations, Dad drove one and Son drove the other. Business was good, so good they had purchased a brand-new Rig which all up cost over $300,000

Unfortunately,t he family had to attend an important event, so they employed a driver to do the days work and to do the deliveries in the new Rig. Unfortunately, the driver had a serious accident and wrote off the new Rig.

Whilst the driver was uninjured and the insurance company agreed to pay out, the administration involved in getting the claim processed was lengthy, several months in fact. This meant that the business only had one truck producing income but had to keep up the payments on 2 Rigs at the same time.

In order to keep the business a float, this meant the family was forced to increase the mortgage their house and max out all their credit cards. They were in that much financial distress that when the new truck arrived, the business simply could not afford to fuel the trucks.

What They Did Next

At this point, the business contacted Nova Cash Flow Finance, in urgent need of assistance and on the verge of giving up, walking away from the business and losing their home.

Nova noted that had over $80,000 of receivables, unpaid sales invoice for work they had completed. The business submitted an application and Nova had a factoring facility in place within a week of initial inquiry. This facility allowed 80% of the business’ receivables (over $80,000) to be made available for use, allowing the fuel bill to be paid and creditor payments to be made. They were able to pay down some of the credit cards and get the house mortgage back in order.

Result

Due to the quick access to cash that Nova provided, this family was able to continue operating their business and their family home was no longer at risk of foreclosure. Without the facility provided by Nova, this company may not have been able to find its feet quickly enough to ride out the wave.

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What Our Clients Say About Us:

5/5

Since commencing business with Nova Cashflow Finance, their service has been impeccable, always working with our staff to meet deadlines and meet business requirements. The team at Nova Cash Flow Finance are easy to work with and have excellent interpersonal skills. Nova Cashflow Finance have a user friendly online interface which allows us to submit invoices, download reports and update customer information with ease.
I would like to ask you to consider Nova Cashflow Finance for your factoring needs of your company. I strongly recommend the services of the company.​

Connie

New Labour Hire Business

Nova provides our business with a reliable easy to use cash flow solution. Their funding has helped our business grow and develop. They have easy to use online software that is very transparent so we can see what is happening with each and every invoice. ​

Tyler R

Transport Business Owner

I don’t think I could operate my business without Nova Cash Flow Finance. They turn my loads into cash and keep my wheels rolling.

Clive S

Transport and Logistics Operator

Cash is King in our business and Nova Cash Flow Finance have solved our cash flow problems more than once. It’s one of the best moves we have ever taken.

John M

Distributor

Nova Cash Flow Finance have been a big help in our business. Keeping the cash flowing and helping us to pay our bills and grow our business.

Trish W

Contractor

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If you have any Cash Flow Finance or Working Capital requirements, feel free to contact us on 0467 299 303 or email us at operations@nbf.com.au.