case studies

Case Study 1

Business: Wholesaler of finished imported goods.

Facility Size: Originally $500,000 now grown to $2.5million.

Annual Sales: Was $350,000 now $35m.

• Came to 180 Group when they had annualised sales of $350,000 and were in their first year of trading.
• Company couldn't find any financial support from banks because they were in their first 2 years of trading.
• 180 Group provided an invoice finance facility.
• The company outsourced the debtor management to 180 Group. This allowed the business to focus on growth and saved the company time and money.
• The business now has sales in excess of $3M per calendar month... and growing.
• Retention of earnings provided a gradual "pay down" of the facility which in turn allowed new product growth.
• Now a successful diversified business but still has issues securing funding from banks due to the pace of their growth.

Case Study 2

Business: Logistics

Facility Size: $1.0million

Annual Sales: $15million

• The company constructed a significant rural logistics hub to become a major rural service provider.
• During this major period of capital outlay, the business then received a very large fine from Work Cover after a workers comp claim. As a result the solvency of the company was put into question and the company was forced into Voluntary Administration - this impaired the relationship with their Big 4 bank.
• 3 shareholders (1 external and 2 internal) had differing views on the future of the business. 180 Group had to work with them all to achieve an amicable result.
• Their bank put a freeze on their invoice finance facility and the company was given 4 weeks to refinance. It was made clear this would be strictly enforced.
• Another finance company had promised a facility but was hesitating to complete.
• 180 Group was called in two weeks before the refinance deadline. In the next 2 weeks we implemented a $1M facility and paid the bank out in full.
• Company is now profitable post Voluntary Administration, growing and using their invoice finance facility to fully utilise the new logistics centre they have constructed.

Case Study 3

Business: Contract Packaging

Facility Size: $1.2million

Annual Sales: $7million

• The business had a product recall.
• A major customer who owed the business $1.2million stopped payment on their debt due to the recall
• PLUS, their bank had just withdrawn from the invoice finance market and required repayment of their facility.
• As a result of the bad luck, the directors were forced to put the company into Voluntary Administration.
• 180 Group worked with the Administrator to provide an invoice finance facility during the Voluntary Administration period to keep the company trading.
• 180 Group then implemented a new facility for the company once the Administration period ended.
• Due to the size of the liability to the bank, 180 Group negotiated on behalf of the directors a payout strategy with the bank. As a secured creditor we were able to work with the bank to pay them out over time out of earnings of the business.
• The company is now turning over close to $1M per month, has won several new contracts and realistically will increase annual turnover to $15M plus this year.