Client Snapshot: Problems for a thriving Pharmaceutical company solved twice

 In Entrepreneurs & Startups, Trade & Inventory Finance

Often i write about our products using different hypothetical scenarios as examples – however today I thought it would be interesting to get a bit more specific and do a case study on one of our actual existing clients.

What makes this particular case study interesting is the facility that we offered them was two different products,  that helped solve two very different problems. Something people may not have considered possible is that we can combine different types of finance facilities – Infact  in some cases they go hand in hand.

See below for details on how we created more opportunities for one of our clients.

[notice] Company: Pharmacy Value Pty Ltd
Product: Invoice Finance, Inventory Finance
Facility: 500K Debtor facility, 350k Inventory facility [/notice]

Background: Pharmacy Value is a start- up company. They offer premium quality, Australian-made health products at an affordable price. The owners had a track record in the health industry and wanted to start their own company.

Problem 1: Because they were a start up, they didn’t have a trade history, so they couldn’t get anyone to provide funding. As they had a trading list so long, once they delivered stock to customers they would be short on working capital for the business while they waited for customers to pay. This resulted in very poor cash flow.

AR Solution: We provided them with a debtor facility. Funding their invoices instantly before customers had paid, allowing them to free up cash for the business by not having to wait 30+ days.

Problem 2: Once they started trading, a new problem arose – they had to pay for extra stock from the manufacturer on time, our client required urgent funds and did not have the extra cash to fund the stock.

AR Solution: We provided them an additional inventory facility. Where we funded the extra stock produced by the manufacturer.

For more information on how we can help your business grow, contact the office on 1300 651 243.

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  • Rebecca

    Fascinating case study, thanks for the read!

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