 |
 |
|
RECRUITMENT
A Selective Solution to doubling
turnover
 Company:
Selective Solutions
Product: Scottish Pacific Invoice Discounting
Specific business needs
•
Working capital
•
Funding for expansion through acquisitions
•
Flexible funding
•
Powerful ledger management system
Selective Solutions started trading in July 1999 and has increased
turnover from 0 to $25 million per year in just four years.
It provides general recruitment services and is particularly
active in blue-collar labour hire and hospitality, recruiting
for hotels, restaurants, special events and clubs.
Labour hire is traditionally an excellent industry for cashflow
finance given firms have to pay their contractors within seven
days while debtor/customer payments tend to be received within
45 days. An Invoice Discounting facility provides the finance
to cover this lag.
For the first three years, co-owners Jacob Tarszisz and Terry
James funded the business out of retained reserves, juggling
seasonal spikes such as quarterly superannuation and GST payments.
It was only when the pair needed finance to purchase two new
businesses worth about $700,000 that they approached Scottish
Pacific Business Finance for an Invoice Discounting Facility.
The facility enabled Selective Solutions to expand dramatically.
Within a year of taking out the facility, turnover nearly
doubled to about $25 million per year.
Selective Solutions now places 1200 staff a day and has an
office in Sydney, three offices in Melbourne and is about
to open another office in the Sydney suburb of Parramatta
"The business we are in has no
hard-core assets and doesn’t lend itself to any other
form of finance," said Jacob. "Our greatest asset
is our debtors and assigning our invoices to Scottish Pacific
has been one of the best decisions we have made.
"Initially, I only wanted a facility for $500,000 but
I have to thank Brendan Green (Scottish Pacific’s NSW
Business Manager) for insisting I take out a facility for
$2 million."
Terry agreed: "As you only pay for what you use on this
facility, it has proved perfect for funding strong expansion
and providing peace of mind during seasonal spikes such as
GST and superannuation.
"If we need the money for expansion, new purchases or
for seasonal cash crunches, it is there. That increases our
efficiency and better positions us to take advantage of opportunities
as they arise."
Jacob, a chartered accountant by trade, said Scottish Pacific’s
online accounting system, "Open Account", was brilliant
and allowed him to plan the company’s cashflow 24 hours
a day.
"If you are greedy for information, you can go in 10
times a day and draw down or set up reports and find out what
your accounts are doing on the day. It is so time saving with
sending debtors notices and invoices.
"The reporting system is a piece of cake and now you
can draw down until 4pm. I balance on a Saturday and can do
all my draw downs for the next week, even though the funds
aren’t available until Monday night."
<<
Go Back <<
Print this page >> |
