Ask the Experts: Why WA Business Owners Struggle With Funding Options
We had a chat with Con Provataris, Director at Precision Finance in Perth WA, a couple of questions.
Precisions aim is to complement your existing business through a comprehensive suite of Finance & Insurance services that help you generate additional income streams and to perform at your very best. Precision is not only a product provider, but rather a comprehensive Financial Services Partner.
What do you think is the biggest struggle for WA business owners obtaining finance in the current climate?
The banks are extremely nervous and are not providing easy access to funds on the back of an expanding mining industry.
All large projects have started e.g. Gorgan and the subcontractors which are obtaining long term contracts with large mining companies such as BHP, Rio and Chevron are finding it very difficult to access funds to pay suppliers, wages and day to day operating expenses.
Another struggle in WA is the landscape is dominated by progress claims and Purchase order transactions and there are very few trade financiers who will accelerate cash into a business based on this type of transaction. The reason that there are few financiers in this space is basically they don’t understand it.
What industry in WA is thriving at the moment?
Mining related in particular engineering companies, permanent and mobile accommodation manufacturers and specilaist OH&S providers. They are the 3 main areas booming.