Cash flow restored for maintenance business
23/07/2012 - When Joe Cumbo started Allstone Restorations 14 years ago he probably didn't anticipate how difficult it was going to be maintaining a healthy cash flow.
Allstone Restorations provides maintenance and restoration services to hotels and office blocks as well as some high-end domestic work.
They remove deep scratches and excessive wear, polish surfaces, remove stains, and apply protective sealers. They also work with specialists such as architects where they test what is the best stone for a particular application.
The business has grown significantly and now has a staff of 16 people. However, cash flow was an issue for the business.
"We would invoice at the end of the month then have to wait 30, 60 days and sometimes longer waiting to be paid," Cumbo said.
"It's not that they (the customer) don't pay. It's how long they take to pay and how much of my time is wasted chasing these outstanding accounts.
"In the meantime we have to pay our staff weekly, cover our suppliers' invoices, as well as other business expenses."
About five years ago Allstone Restorations' accountant suggested they talk to Cash Resources about invoice discounting.
"It's been one of the nicest things dealing with Cash Resources; I don't know if it's the people or the industry but basically dealing with one or two persons at CRA we know them, and they know us," Cumbo said.
"We are dealing with real people, not faceless people in the banks.
"We know Robyn (Best) and Mark (Butler) and are able to just ring up or pop in at any time. In some ways they are an extension of the business. They are really helpful. It suits our size and the way we like to deal with business. We appreciate them.
"If we had an overdraft we wouldn't have to think about invoices as much, we'd just put it into overdraft. With Cash Resources you still know it's your invoice and you have to make sure it gets paid.
"It is has given us the cash flow as we've needed it and the opportunity to grow our business without sending millions of spreadsheets to banks every month."
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