How a large order almost crippled a business but smart supply funding turned things around
– tim’s weekly funded scenario

The client designs and constructs bespoke generators to the construction and underground mining sectors.

Background

The client had recently been awarded a tender which required an increase for overseas components and domestic partner contribution for the accommodation of the complete project, plus there was a requirement for overland delivery using Australian heavy haulage to site installation.

•    Import and logistics – 60 days from purchase order.
•    30 days value add construction.
•    14 day delivery and installation.

Payment terms

•    20% of delivered project on execution of the contract payable 30 days from date of issue.
•    Balance paid 30 days after installation sign off.

Project value $5.85M over 7 months.

tim. was competing against a first-tier bank, three factoring companies and one second tier finance company.

tim. was awarded the funding. Why?

The tim. solution for our client was:

1.    Established a trade import funding facility (no money contributed by the client);
2.    Established a rolling facility to AUD$6M;
3.    Fully timSecure™
4.    Limited Recourse to the client;
5.    No property security required;
6.    Reduction in procurement and import supply costs by 18% (all international components);
7.    Reduction in domestic manufacturing for specific components by 6%;

As a result of this solution, the effective cost of the entire facility was zero to the client, and it in-fact improved the client’s overall margins on the project, not to mention a drastic improvement in their working capital requirements.

This solution is a first in the Australian market and has come about as a result of the smart integration of all aspects of the supply chain, by the tim. team.

Thinking well outside the box created opportunity.

Talk with a tim. trained expert today. It is undeniable that funding solutions and product design is changing at a pace and the reality is, that unless you fully understand a client’s business and their needs you will not be in a position to offer the best solution.

When it is time to review your business funding arrangements, and cash flow needs, then a meeting with a tim. trained expert is time well spent.