Today’s presentation

• Outline current business conditions• Address how cashflow affects business strength• Identify early warning signs of cash flow problems• Help manage your business through uncertainty…

and position it for growth• FIFO Capital / Cashflow Specialists

Reasons for unpredictable cash flow

• Increased expenses – Wage costs & redundancy payments• Reduced sales activity• Creditors requiring earlier payment• Debtors delaying payments and “customer failures”• Earlier payment dates for ATO• Need to replace aging equipment• New business opportunities• Increased stock levels• Loss of business activity

Businesses limited access to funding

• Poor relationship with bank • Inability to borrow additional funds• Inability to raise equity• Restricted access to alternative sources of finance

Reasons for seeking additional funding

• Additional sales opportunities• New contracts• Increased costs• Capital expenditure• Research & Development

Typical business financing

• Investment financing (long term)- Shareholder equity- Mortgage loans- Secured bank overdraft- Unsecured loans

Cash flow financing

• Also known as… - Invoice Discounting- Factoring- Invoice Finance- Debtor Finance- Receivables Funding

How Invoicing cash flow financing works

1. Client provides good or service to their customers and invoices them

2. Invoice details are sent to the funder

3. Funder makes available up to 80%-90% of the value of invoice(s)

4. Customer pays invoice(s) to funder

5. Funder then repays the balance of the money less charges

Cash Flow Funder Client Customer

1. Sells product

2. Copy invoice

3. Advance funds

4. Payment to funder

5. Surplus funds

Cashflow finance benefits to the client

• Converts debtors (most SME’s largest asset) to cash• Cash is immediate• Cash flow keeps pace with growth• Property not required as security• Greater buying power• Ability to add new product lines• Negates the need to offer customer discounts & rebates• Protection against bad debts

Suitable industries

Business to business sale on credit terms•Transport and logistics•Earthmoving•Civil Works•Recruitment•Manufacturing•Light engineering•Wholesale and distribution•Printing and packaging

FIFO Capital’s offering

• Single invoices, single debtors• We do not impose debtor concentration limits• We do not run a “whole” turnover facility• Transparent pricing (no long term contracts, no application &

exit fees, no legal fees)• Property security is not required• No impact on existing banking arrangement or security

structure• 60% of our clients operate within the Manufacturing, Mining

and Construction sectors

FIFO Capital

Single Invoice Finance•Can provide short term funding (3-6 months) to client requiring additional working capital•Can provide client’s deposit or upfront GST payment applicable for equipment finance•Can mitigate client’s ATO liabilities•Can clean up client’s repayment arrears•Can fund start-up businesses without trading history•R&D tooling

Peace of mind

• Local representation and local approval• Fast approval turnaround• Advancing credit sales payments• Commercial – does not involve debt• Attentive to clients needs

Next Steps

Ray PettyDirector – NSWFIFO Capital

Mobile: 0418 64 54 39Fax: (02) 9012 0359Email: ray.petty@fifocapital.comWeb: www.fifocapital.com.au

Damien PettyDirector – VictoriaFIFO Capital

Mobile: 0422 207 405Fax: (03) 8672 7768Email: damien.petty@fifocapital.com Web: www.fifocapital.com.au

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