Launching a new product is exciting and costly.
A manufacturing company with a turnover around $1,000,000 pa was experiencing excellent forward orders for their new product which had taken considerable resource to develop; the only problem now was the debtor ledger was increasing rapidly but the payments being received were not keeping up with the cash flow needed to now fund the business.
John, the owner, turned to his bank for an increase in their facility but they could not assist as the security on John's home and other assets and were not enough to support the additional funding.
John's bank referred him to Fifo Capital, and within a couple of days John had selected some debtors invoices for which he would like to be paid.
Fifo Capital paid him 90 per cent of those invoices and the pressure was off.
John continues to pass some larger debtors to Fifo Capital as he needs to, and his business continues to grow.