Name: Pinnacle Hydraulics
Location: Victoria
Industry: Importer and distributor of materials handling goods
Turnover: $2.5 million pa
"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.”
Outsourcing to experienced specialists a key to success.
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 and his partners had every confidence their initiative would succeed. John joined the team after ten years experience as managing director of a German material handling equipment company and together they possessed extensive expertise of the clearly defined market.
A recommendation of their European partners and their Australian accountancy service was the key to real progress for Pinnacle Hydraulics, that being to outsource their cash flow management to Bibby Financial Services.
“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."
A partnership for a successful future
"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.”
Factoring provides a flexible source of finance by allowing businesses to unlock the funds tied up in unpaid invoices – leading to an immediate injection of cash.
Businesses send a copy of their invoices to Bibby who then converts up to 85% of the unpaid invoices into cash within 24 hours. Businesses can draw down on this fund pool at an interest rate. Once the debt has fully been collected by Bibby the remaining 10%, less a fee, is transferred from Bibby to the business.
John can view payments received and the amount of funding available via his online account with Bibby.
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.”