‘we had recently committed to $1.2 million in new contracts and were being asked to do more and more by the day' 

CEO Telecommunications Sector


Highlights

  • A highly regarded ex-Telstra employee branched out on his own five years ago and now has developed strong direct relationships with a number of major telecommunications groups
  • Business has grown exponentially in the past 12 months
  • InvoiceX provided an immediate funding solution on reasonable terms with absolutely no lock-ins. Importantly, our facility is confidential.
  • The company is now taking on new work, confident that they can fund the next expansion.

 

Situation

InvoiceX specialises in funding ambitious companies, with particular emphasis in the telecommunications sector. These are usually family owned companies engaged in a range of activities such as designing, consulting, hauling, splicing, building exchanges, etc. The common denominator is that they have household names as customers: Telstra, NBNCo, Visionstream, Vodafone, TPG, Optus, etc.

The company is owned by an ex-Telstra technician, who after years of high achievement went out on his own to build his own business. Starting from home five years ago, he now has leased a warehouse and has a highly skilled team. Business is booming, and has gone into over-drive since becoming a Tier 1 contractor to a number of major telecommunications groups.

Growing profitable companies get into trouble without working capital to bridge cashflow. When a company is growing rapidly with major customers, the situation can unfortunately become disastrous.  This was the tense situation that the company was in. He had recently committed to $1.2 million in new contracts and was being asked to do more and more by the day. The bills were coming in faster than the payments. He only had a $50,000 overdraft. How was he going to fund this pipeline of work? 

Solution

Within a day of making contact, the company had agreed to begin trading on the InvoiceX MatchMaker platform. For him and his trusted accountant, the decision was an easy one. Immediate cash on fair and reasonable terms and absolutely no lock-ins. He began to trade confidentially Telstra, NBNCo and Ventia invoices, bringing immediate much needed cash into the business.

This allowed him to not only sleep at night but more importantly undertake more and more work on his terms.

We are proud of the fact that a customer has never left us, although they are free to do so at any time as unusually we do not lock-in our customers.