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Working Capital Solutions

Working Capital Finance - Solutions

Are you seeking a solution to your working capital issues? - we can help.

BSI Capital has formed a strategic alliance with a leading working capital originator. This relationship provides BSI Capital clients' with ready access to working capital solutions, subject to meeting certain requirments.

The originator has it's own funding, consequently they are able to strucutre a transaction that is not simply a cookie cutter approach, but a solution tailored to each companies working capital circumstances.

If a viable working capital solution is what you need ? Contact Alan Milwidsky or Ivan Kaye on 02-9212 5505 or info@bsi.com.au

Inventory Funding

Finance your sales growth with an innovative inventory finance product - Minimum Facility $500,000

Who For: Business to Business sale of finished goods, including:

  • Importer
  • Manufacturer
  • Distributor

What For:

  • Funding to grow your sales
  • Extended payment terms for purchases to increase purchasing capacity

How It Works:

  • Fund up to 50% of the cost value of inventory purchases
  • Settle the supplier for purchased inventory with up to 50% funded by the Inventory Facility and the remaining portion funded by the linked Debtor Facility
  • Amount funded by the Inventory Facility is debited from the Debtor Facility and credited to the Inventory Facility in agreed monthly installments. The number of installments is determined according to the business stock turn cycle to a maximum of 6 months.
  • The facility revolves as the stock turns into sales and future purchases are made.

What You Do:

  • Details of inventory purchases are provided to the funder which are uploaded to their online business centre
  • A tally sheet that reconciles the inventory movements since the last financing are also provided at each financing
  • When funding the purchase of goods from a supplier, the funder may also require:
    • Copy of purchase order
    • Copy of invoice from Supplier
    • Evidence of delivery
    • Copy of on-sale purchase order if applicable
  • Details of supplier payments due will be required so the funder can facilitate these payments

What It Costs:

  • Once the Facility is operating, there are only two fees charged [except for minor transaction expenses]. These are similar to a Receivables Finance facility:
  • A Usage Fee charged on daily balances of the amount of funds outstanding, and
  • A Batch Fee based on the cost of inventory transacted at each financing [an account keeping fee]

What you Need:

  • Maintained Accounting package (e.g MYOB) that tracks inventory movements by item
  • A Receivables Finance facility must be established and run concurrently
  • Trading in non-perishable finished goods (raw materials if saleable in raw state)
  • Trading history (minimum 12 months) with minimum sales of $5m p.a
  • Minimum stock turn of 4 times per year

Working Capital Funding - Receivables

BSI can provide a solution to your working capital needs - Minimum facility $200,000

Receivables Finance, otherwise known as Debtor Finance or Invoice Discounting, allows a business to advance funds against debts owed to them for goods supplied on credit. Debtors and stock will often be the largest assets owned by a business and they tie up significant funds. Receivables Finance allows you to use these business assets to fund your business.

Many will fund their business with an overdraft that is secured by personal property. Receivables Finance is a great way to remove your personal assets from the business and use those assets for building wealth or other personal needs. Advancing your debts allows you to create the cash flow you need to pay your suppliers without the need for an overdraft. The facility grows as your business grows so the more invoices you raise, the more cash you can advance.

Benefits of this type of finance include:

  • Generally, not secured by real estate. Keep the home safe and utilize the equity for personal wealth creation or other personal use.
  • Take advantage of supplier discounts. Many suppliers offer discounts of 3% or more for payment within 7 Days. This discount will generally more than offset the cost of finance.
  • Avoid offering discounts to customers. Customers may take a significant discount, eg 3% on payments for 7 days. Receivables Finance will generally be cheaper.
  • Receivables Finance can be used as a finance tool in acquiring another business.
  • Available funding from the Facility is not capped by a fixed asset. Unlike an overdraft limit that is capped by the Bank according to the value of the property taken as security, receivables finance is more flexible and allows for increased funding as sales grow.

Transacting with BSI's working capital partner is very easy with an online business centre. All information is provided to our partner via the web site with 24/7 access to detailed reports online. BSI can provide a cost efficient finance facility in an easy to manage and user friendly environment.

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