Rush Logistics & Services - Logistics Company
rapid and healthy growth
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.
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.