A Melbourne-based steel wholesaler, turning over $9M annually, was supplying into the residential construction sector, but cash flow wasn’t the only thing under pressure.
The business had an existing invoice finance facility with another lender, but the relationship had broken down. The facility included debtor management services, but the ledger was in poor shape, and both sides were pointing fingers. Whether it was poor internal processes or inadequate oversight from the funder, the result was the same: a working capital solution that wasn’t working.
That’s when the client’s finance broker stepped in.
They quickly identified a few critical issues; the client needed tighter internal controls around collections and a funder they could trust to move forward with. They also required credit insurance since the ledger included residential builders.
The broker brought in a virtual CFO, someone they had collaborated with successfully in the past. The broker was also able to introduce a credit insurance specialist. With those pieces in place, they introduced the client to Hermes for the funding.
Hermes reviewed the situation and worked closely with the incoming CFO to assess the plan for re-establishing control over the debtor ledger. Confident in the new oversight and potential of the business, and the de-risking of the ledger with credit insurance, Hermes structured a new invoice finance facility with a limit of $2M and negotiated a smooth payout with the outgoing funder.
The outcome? The client finally had a clean slate, stronger internal systems, a supportive funding partner, and a platform to grow.
Sometimes, the right solution isn’t just the funding; it’s the team around it. And that’s what made the difference here.
We understand the unique challenges SMEs face when cash flow is under pressure.
With a lean management structure made up of experts with years of experience, funding solutions can be tailored to your needs, and a term sheet provided within 24 hours.
We work collaboratively (and almost exclusively) with brokers to provide the most effective outcomes for their clients.
Straightforward application process without the hassle of traditional lenders.
Clear, fair pricing with no hidden fees.