Client Stories

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Update: The Australian and New Zealand operations of Bibby Financial Services were acquired by Scottish Pacific Business Finance in late 2015 to create Australia’s largest non-bank invoice finance specialist. Welcome to our website.

kiddimotoThe Australian distributor of the UK’s original balance bike company Kiddimoto needed to find the missing piece of the puzzle to best fund their growth – they found trade finance, and now both Kiddimoto Australia and Kiddimoto in the UK use trade finance to solve cashflow problems

Any importer or exporter knows the cashflow pain of dealing with that gap between paying factories for product and receiving payment from customers.

Kiddimoto Ltd was founded by Simon Booth in the UK and Simon’s business has grown from making bikes in his garage to distributing to 30 companies globally, including Australia. It was his Australian distributor, Courtney Williams of Kiddimoto Australia, who was using trade finance to grow her business and who put Simon onto trade finance.

Now both Kiddimoto and Kiddimoto Australia are going from strength to strength.

How the Australian business uses Scottish Pacific Tradeline trade finance

Courtney Williams started 5 years ago as a Kiddimoto distributor and her business grew very quickly.

Courtney, a flight attendant who studied sports administration, was halfway through a business degree and a was stay at home mum when she couldn’t find the sleek Kiddimoto balance bike she wanted for her daughter.

“I approached Kiddimoto UK and one thing led to another and I became their Australian distributor,” the Cairns-based now mother of three young children says.

“It was fate! I work so well with the UK team, and am not just a distributor – I design, and it’s awesome to see some of my designs picked up the head office and used overseas.”

The first start-up business issue Courtney found was that her customers wanted stock, but she couldn’t afford to supply it quick enough for demand. The 90 day cashflow crunch is a killer for SME importers.

“Because we were a new business, we didn’t have years of financial statements funders required. Luckily I’d built really strong relationships with retailers and eventually reached the stage where we could look for new ways to fund our growth.”

Her research led her to Scottish Pacific, and a trade finance facility. Tradeline being able to provide the funding in US dollars made it even easier to pay overseas suppliers.

“Tradeline has been so good in really giving us a chance to grow – it frees up the stressful 90 day wait for payment. We pay a 30% deposit to suppliers, and 70% is tied up in containers on the ocean, so for 90 – and sometimes up to 120 – days our cash was tied up.

“Our $US50,000 facility with Tradeline frees up the 90 days it takes us to get goods in. It’s a really useful breathing space for a small importer,” Courtney, who is managing director of Kiddimoto Australia, says.

“And it’s not just about breathing space – without the facility we would not have had the power to pick up big contracts, including with Holden and Suzuki.”

She said Tradeline offered service that small business owners appreciated, including a fast response to funding requests and a new server that is simple to use and easily accessible to SME owners after hours.

Courtney’s children – aged 5, 3 and 1 - are her “test ponies” for the colourful balance bikes, and she involves them to see how the designs go physically and which colour schemes please young children.

“It’s funny, I didn’t’ see myself going into business, I’d always loved design. But finding a product I was passionate about, and the right way to fund it, has really helped me balance family and business success. I’d like to keep growing, and to be able to employ local people here in Cairns.

“I’m really proud to be able to design for kids in Australia and New Zealand, as the markets are very different to the rest of the world.”

For Courtney, trade finance has been a big part of helping her business grow – yet she’s amazed how many of her peers don’t know about it.

“I speak to many wholesalers at trade shows and I’m amazed how many aren’t already using trade finance. As we grow, our facility can grow with us – it seems a no-brainer.”

How the UK business uses Scottish Pacific Tradeline trade finance

Kiddimoto Ltd’s UK operations manager, Laura Williams, said the 13-year-old business had really taken off in the past seven years, with on average 20 percent growth each year.

“Before we found Scottish Pacific Tradeline, it was very tight trying to fund our growth. We found we were having to say no to certain customers as we couldn’t fund stock,” Ms Williams says.

“Our $US200,000 facility with Scottish Pacific has allowed us to now work with these customers. It has really helped us bridge that gap between paying supplier factories in China to when we potentially get payment from our customers.

“It means we have positive cash flow at critical times and this is now very much a long term relationship to help fund Kiddimoto’s plans for the business,” she says.

Kiddimoto Australia is a proudly Australian family owned and operated small business, providing quality balance bikes and accessories to develop and improve young children’s balance.

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