Rush Logistics & Services - Logistics Company
Business Financing & Cashflow ━━━━━ 2021
Invoice financing is a powerful and effective tool that unlocks working capital to facilitate
rapid and healthy growth
rapid and healthy growth
CHALLENGES
Due to delay payment from their debtors, our client suffer a tight cashflow situation. They have big concerns of paying their manpower overhead cost and rental payment, which are very crucial for their project. Especially government levy and cpf payment which might cause them to incur fine and penalties.
Due to their cashflow issues their application was declined by most banks as their bank statement is very bad, with very low bank balances every month.
They sought help from Bizsquare Management Consultants after a strong recommendation from their friend who has received our help before. The customer also seen our Facebook ads and heard about us before.
HOW BIZSQUARE HELP?
Bizsquare collected all their documents and do a thorough Analysis. Bizsquare realised that their strong point is they have a list of strong reputable customers.
Therefore we propose them to do a invoice financing. We analyse their trade cycle and propose for a 120days trade line for them to use.
We take out every single debtors of the client and discuss their credit terms and what is their average sales invoice amount and the frequently of their sales. With this, we are able to estimate our cashflow better. Bizsquare propose to see how we can reduce their cash conversion cycle for their trade.
There are 2 ways we do it.
Therefore we propose them to do a invoice financing. We analyse their trade cycle and propose for a 120days trade line for them to use.
We take out every single debtors of the client and discuss their credit terms and what is their average sales invoice amount and the frequently of their sales. With this, we are able to estimate our cashflow better. Bizsquare propose to see how we can reduce their cash conversion cycle for their trade.
There are 2 ways we do it.
- Get a factoring line to provide them with the payment earlier (than to wait for 3 months).
- Think of a collection strategy which customer try to negotiate with their debtors an earlier repayment scheduled for a discount in their invoices.
RESULTS
The reduction in debtors’ turnaround days accelerated the company’s revenue growth, allowing them to take on bigger projects with existing buyers, while also having successfully tendered for similar-sized large buyers. With Bizsquare’s expert advice and assistance, the company tripled its revenue in 1 year, from $2M to $6M.
1
Accelerated increase in turnover
2
Bypassed traditional financing barriers
3
Strengthened cash balances
