Case Study 6
Renewable Energy Construction Firm
Annual Turnover $10,082,000
This renewable energy construction firm started from humble beginnings in 1984. The business constructs and installs renewable energy farms throughout Australia. Even though the business was winning med to large contracts with well-known construction firms in Australia, the contracts were subject to length progress terms. These trading terms had a serious impact on the business to meet supplier obligations.
The MD approached PFBS for funding options to assist with this working capital problem. The trade finance facility was the ideal option. Trade finance enabled the business to buy materials, both raw and finished goods to commence the projects, thus allowing them 120 days to repay the lender over stage payments, which tidied in with their customers paying. This cashflow relief ceased the reliance on shareholder capital being continually injected to support the business.
The business is now thriving, is a serious competitor to those within their industry and has enabled the client to secure new contracts with the confidence that their trading performance, continues to support increased trade finance lines.