When a suburban printing company, let’s call them SomePrinting Co, received a big contract from an international travel agency, they were ecstatic, it was the biggest deal they had ever won.
In this case study, SomePrinting Co received a large contract to print thick full-colour brochures and pricing packs for the travel agency’s latest tours.
This contract was lucrative because the group of travel companies hosted many tours and printed new marketing collateral for each one, which meant there would be a steady stream of business.
However, SomePrinting Co had a problem. The director knew from industry experience that this travel group could take up to 90 days to pay, whereas SomePrinting Co had to pay its suppliers within 30 days if it wanted access to preferential pricing.
With an annual turnover of only $2 million, they had very limited working capital reserves. How would they finance the job?
Compounding the problem, winning the contract meant an increase in overheads – more staff and consumables were needed. Although they’d make enough profit to cover these costs long-term, they’d need extra cash in the meantime.
Nova Cash Flow Finance’s invoice finance, offers finance based on the value of the invoice – the perfect solution. Their new facility could grow with their business and not be limited to the value of the family home or other real estate assets.
SomePrinting Co contacted Nova Cash Flow Finance to apply for invoice finance. A fast and simple process. Nova was able to set up a facility in less than a week after that, when SomePrinting Co invoiced their customers, they forward a copy to Nova Cash Flow Finance. Within 24 hours, SomePrinting Co received 90% of the invoice amount and can now pay their wages, suppliers and other overheads on time.
With this simple ongoing arrangement, limited only by their sales growth, SomePrinting Co not only fulfilled the new contract but could accept other large orders. This allowed them to expand their business thanks to Nova Cash Flow Finance’s simple and easy invoice finance solution.
We can help your small business grow too. We offer several financing solutions, including invoice finance. Contact us today to discuss your business needs on hello@ncff.com.au or phone 1300 138 186.