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For more than 25 years, Scottish Pacific has been helping Australian and New Zealand business owners to achieve their aspirations and improve their cash flow with innovative funding solutions free from the constraints of traditional banking.
Scottish Pacific has a range of finance options to support business owners through every stage of the lifecycle from start-up, through to maturity. We also support turnarounds, management buy-outs, mergers and acquisitions. If you have a working capital requirement, we have a facility for you.
To grow from a start-up offering one child's toy in two colours, to a thriving business importing and distributing 389 toys and counting, Australian Toy Sales made excellent use of a debtor finance facility.
As Australian Toy Sales approaches its fifth anniversary in business, Managing Director Mike McGee reflects on how far they have come.
Mike and his wife Annette started the business in May 2010, combining her skills in the toy trade (she had worked for niche companies as well as huge brands such as Lego and Mattel) and his in transport and logistics.
"We literally started with one product in two colours. Annette had been sales agent for a New Zealand company's wooden balance bike and did such a great job that they offered us Australian distribution rights," Mike says.
From this, Australian Toy Sales was founded in 2010, and within seven months had increased the distributorship of this product by 345 percent. The business now boasts a 65 percent growth rate and 389 products and counting (78 new products in 2015 alone).
Australian Toy Sales distributes popular wooden eco-friendly Everearth toys and last year added Teamson, quality global wooden children's furniture and toys (instantly adding 165 products to their inventory).
"To come as far as we have, a huge amount of capital was needed to grow the wholesale business quickly and hold that much stock," according to Mike.
"By 2011, with our growth rate, we found the banks too difficult to deal with. We weren't specifically looking for debtor finance but in researching the best funding options we stumbled across Scottish Pacific - and we are so glad we did. Scottish Pacific made it very easy for us to grow, and grow so quickly."
Mike says Australian Toy Sales fitted the criteria that made debtor finance such a useful funding option.
"As importers and wholesalers we need to pay for large shipments, ship them to Australia, then pay the duty and GST before we offer them to our customers on a 30 day account. As the business and customer base grows, so do our debtors."
The great thing about debtor finance is that you can't really over-borrow because you only borrow 80% of what you are owed.
"There's no overdraft hanging over your head, the debtor finance grows with you, whereas you can outgrow an overdraft quite quickly.
Australian Toy Sales sell to retailers (mostly toy shops, gift and homemaker stores and baby stores) as well as online retailers. They also supply some of the largest rewards programs in Australia.
Australian Toy Sales delivers the latest toy innovations and designs to the Australian market. http://www.australiantoysales.com.au/