Alternative Finance for businesses short of cash

When a business is short of cash your typical trading bank isn’t always the best source of finance. Last week The Accounting Collective team met with Helen Schafer and Gerard Prendergast who own the local Fifo Capital franchise. Fifo Capital operates in a niche market that most trading banks shy away from. They specialise in providing short-term cash flow solutions to businesses that find themselves short – typically because of slow paying debtors or because they are growing so fast that they are having difficulty funding their general working capital requirements. There loans are from $5,000 to $250,000 or more and range from a few days up to 12 months. Here’s a quick summary of their products:-

Fifo Factor Invoice Finance

The Fifo Factor facility caters for businesses with an immediate short term cash requirement; those that do not wish their existing banking facilities to be affected. Many businesses using this facility are in growth mode or simply needing to overcome an unexpected hurdle of sorts.

1. You sell goods or deliver services to your customer, and you invoice them
2. You assign the invoice to Fifo Capital at an agreed discounted price
3. Fifo Capital immediately pay you up to 90% of the invoice value
4. Your customer pays the invoice to Fifo Capital and they pay you the remaining 10% less their fees.

Fifo Business Loans

Fifo Capital offers short term business loans providing your business additional funds over and above existing banking arrangements. Loans cater for businesses requiring cash for general working capital, stock or equipment purchases and payment of tax, creditors, wages or one-off unexpected expenses.

Fifo Capital Stock Finance

Using stock purchased as security, Fifo Capital can fund up to 100 per cent of the value of the goods. Essentially Stock Finance is a loan to buy the required goods using the value of the stock as collateral. The stock becomes the secured asset and the business is advanced the necessary funds.

Pay Vendor Finance

Vendor Finance gives your customers the option to pay off your invoice in installments without you having to finance the deal yourself! You get immediate payment for your sales from Fifo Capital and Fifo Capital allow your customers to pay their accounts over a 3-12 month period.

So if your business is healthy but short of cash give me a call and we can discuss whether Fifo Capital is the right choice for you.