Case Study
Factoring finance helps importer reach the pinnacle
Outsourced receivables to experienced specialists
Pinnacle Hydraulics is the exclusive importer and wholesaler of particular brands of European hydraulic forklift attachments, traction batteries, electronic chargers and machinery seats for materials handling, construction and agricultural equipment.
Managing Director John McElwain had ten years experience as managing director of a German material handling equipment company and possessed extensive expertise of the clearly defined market.
A recommendation of their European partners and their Australian Accountants was the key to real progress for Pinnacle Hydraulics, that being to outsource their cash flow management to Bibby Financial Services through a factoring facility, also known as cash flow finance, invoice finance or debtor finance.
“We insist on working with specialists who know and understand their field so that we can draw on each individual’s expertise and professionalism, be it accounting, logistics, or cash flow.
"We see Bibby as our cash flow expert and business partner, helping us to sustain the growth of our business and enabling us to keep focused on what we do best – servicing our clients.”
Flexible funding helped avoid the bottlenecks
Accustomed to European banking practices where factoring is a recognised and popular form of debt management, John is relieved to see the concept is finally taking hold in Australia.
“Flexibility in providing a true financial partnership allows for businesses to develop in line with its growth, not to be hindered by rigid finance terms set by banks that often require personal success as the growth product. European and American banks recognise this – they see it as their role to help businesses develop, not limit their opportunities with restrictive attitudes.”
The partnership with Bibby also lets John minimise cost and risk to his business.
“The costs one associates with dishonourable cheques and drawing down on credit funds can be enormous. That is where Bibby is different – the balanced flow of money takes away any reason to panic.”
The actual names of the entities and individuals in this case study have been withheld for privacy reasons.