We understand that every business is different, big or small, public or private, local or national, and we’ve helped all kinds reach their goals with flexible finance solutions. Some were looking for a permanent fixture to help with day-to-day business, others simply needed an extra hand while they went through a growth spurt, while many use us as and when they need us, at no extra charge. At Key Factors, we have numerous options to suit your business, whatever your setup and whatever you want to achieve.
We know that business growth opportunities or cash-flow problems can arise unexpectedly and businesses often don’t have much time for delayed reactions to these deadlines. There isn’t usually spare time for your stakeholders or many of the numerous company representatives to get involved in the decision process. This also applies to sitting around waiting for application approvals, thus our flexible options. Key Factors can sit in the background, ready for when we are needed, with no long-term contracts, no minimum volume and no ongoing monthly charges. Fast access to cash flow can make a huge difference to the success of your business, and it no longer needs to be complicated.
Bank loans are often set to strict repayment plans, with very little flexibility and are not easy to initially achieve, they are also often secured by your corporate and even personal assets. This results in stakeholders and business partners being a little apprehensive with commitment and understandably thorough when it comes to risk assessment and figures. With factoring, you are only accessing money tied up in your accounts receivables, therefore the amount will solely depend on sales. If you would rather have no interest to pay or principal to repay, a pay-as-you-go option could be your solution.
Don’t be restricted by caps and limits, with factoring, your ability to grow is in your hands, not the hands of your bankers. Factoring is practically an unlimited source – with your cash availability representative of your sales volume.
Key Factors is a flexible service that can be used for any amount of time on any percentage of your entire business. Plus, factoring can even be used alongside any pre-existing bank loans. This is extremely beneficial when you have numerous members of the company involved in your finances, as there is no long-term loans or detailed bank contracts everyone needs to agree on, just a simple solution with a percentage fee agreed upon in advance.
If you already have a set bank loan that you will be using, or if your loan amount is exhausted, don’t be put off – there is no reason you can’t still make the most of factoring cohesively. They can both work in conjunction with each other, neither causing restrictions. Factoring can give you the availability to grow and pursue new business opportunities.
One such company that dealt with their cash flow restrictions, while still keeping all their stakeholders content came to us in April 2016. Discover how we helped improve their business and gave them the ability to grow using alternative finance.
Introducing *ABC Drill Pty Ltd – now an American owned business that has been operating in WA and Australia since the early 1960s.
The company background
ABC Drill Pty Ltd was originally set up as a local family business specialising in servicing, building and maintaining drilling rigs for the mining industry. With the massive mining expansion in WA after 2001 they grew considerably and were then taken over by an American based conglomerate late 2011.
ABC Drill Pty Ltd now builds maintains and services specialised drilling equipment to supply the Australian market, and are also looking at expanding and selling some of their rigs and technology to overseas clients of the US parent.
ABC Drill Pty Ltd now has the backing and strength of the US based parent, and their growth to date has been fully funded by the US company. They have no bank lending of any kind and own the majority of their plant and equipment, buildings and real estate. The parent company has of late, pushed for them to become more ‘cash flow’ self sufficient, hence their request for help from Key Factors.
This was a great opportunity for Key Factors to highlight their flexibility and give the company an opportunity to grow, using their cash tied up in their accounts receivables as and when needed.
Finding a cash flow solution
The major banks have all let ABC Drill Pty Ltd business pass, as they all wanted water tight security and guarantees from the US based parent and shareholders for any lending the WA company wanted.
Key Factors were able to structure a facility and security arrangements that suited both the local CFO and US based directors and shareholders. At Key Factors we have the flexibility to work around your business barriers.
A future with Key Factors
Key Factors hopes to be a long term partner for ABC Drill Pty Ltd, and expand their network of high worth and blue chip clients/debtors.
One of the major selling points that the US parent liked, was the ‘pay as you use’ nature of our facility. This is something we offer to all our clients, and can be the ideal compromise. Key Factors sits well as a ‘back stop’ arrangement, which can sit in the background (costing nothing) and be pulled out and used if and when required.
The American company has worldwide offices, employs over 3,500 staff worldwide, and has an annual turnover in the $ Billions of dollars. It specialises in the oil and gas industries around the globe.
ABC Drill Pty Ltd current directors
The majority of directors are US based, plus one Australian director.
The company is managed in Australia by the CFO
100% ownership held by “ XYZ US Inc” of the US
General company information
The Perth based company turns over in excess of $50 million in annual sales.
The facility for $750,000 was approved and documented here in our Perth office in April 2016.
Whatever size your business and however many stakeholders you need to please, with Key Factors, you have the flexibility and options to choose from, depending on your requirements. With no lock-in or long-term contracts, no minimum volume and no annual charges, why not get in touch to discuss how we could solve your factoring problems?
Working with Key Factors could help your business grow and please your company stakeholders, with fast approval and no hidden fees – find us in Perth, Sydney and Melbourne.
With over 30 years of experience and offices in Sydney, Melbourne, and Perth, your business is in safe hands.
Call 1300 884 100 today to find out more.
*Disclaimer: The client’s real business name and details are withheld for privacy reasons.