Client Snapshot: How Looking Outside The Square, Helped A Construction Company Build Its Business
Product: Invoice Finance, Purchase Order Finance
Credit Line: $400,000
State: Victoria, Melbourne
A Melbourne-based construction company had a problem. In some ways it was a quality problem. They had won several government construction projects, but had exhausted their line of credit with the bank & existing invoice financier.
A Melbourne based introducer who was familiar with AR Cash Flow’s progress payment funding offered his client our services which unlike traditional financing, the collateral security was primarily based on the strength of the contracts – in other words the credit worthiness of the parties issuing the contracts was the mitigating factor.
Fortunately for the construction company we were able to approve a credit line of $400,000 within 24 hours and give them a higher level of funding against invoices/claims they raised during each stage of their contracts.
AR Cash Flow was able to fund up to 80% of approved claims within 24 hours, with the remaining 20% being remitted after payment had been received from the end client.
AR also took a transactional view to funding this client and made provisions to allow our unique Purchase Order Finance product to compliment their existing credit line, which enabled the construction company to purchase materials in advance specified in the contract to commence and complete works.
And the client’s relationship with its Bank?
AR’s intervention has been passive, but highly effective. The construction company’s relationship and existing bank overdraft have not been negatively impacted and are free to continue drawing against this when the need arises.
AR Cash Flow & Trade Finance’s ability to work alongside other banks and financiers set us apart from the competition. Our unique product funding options such as invoice finance, project finance, inventory and purchase order finance allows clients to take full advantage of any growth opportunities.
