6.11.17 – Regional Accounting Practice adds significant $$$$ value.… tim’s weekly funded scenario
tim. received an enquiry from a mid-size regional accounting practice. Their brief was as follows:
Their client was a successful (small) engineering and fabrication business and was submitting a tender for a significant regional infrastructure project.
Their client was up against a number of significant players including an ASX listed building and engineering group.
The client required a unique funding solution which straddled discreet funding, advance supplier and contractor payments (within 48 hours of receipt of the supplies invoices) and enhanced cash flow to appoint further specialist engineers and project managers.
The clients existing bank offered a mixture of debtor finance and loans secured by the client’s commercial premises and residential home.
A factoring company offered a full facility with a lock in contract of 24 months with significant debtor concentration limits (due to limited number of debtors) and the facility was not enough to allow the client to confidently submit the tender.
The client implemented tim’s funding solution as follows:
A revolving funding line to draw and pay both the suppliers and contractors within 24 hours of invoices being raised by the supplier and contractors.
A facility to draw up to 80% of their progress claims.
Fully online and managed through timEx and linked to the clients cloud accounting package with automated reconciliation to the accountant.
LIMITED RECOURSE and NO PROPERTY security required
By implementing the tim. facility, the clients gross margins have improved some 12.45% and the cost of the facility is NIL.
What the account said “incredible that a funding solution like this is not utilised more often by business”.
The client has secured the tender!
The cost of implementation was ZERO, in other words, through the correct implementation of the Tim. technology, and innovative product funding, the client has improved their profits and secured new business opportunities. CLICK to Contact a TIM EXPERT TO LEARN MORE.
Innovative funding is available and the right tools allow you to build better funding solutions.