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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.

Queensland small business owner Justin Cavanagh reflects on some of the issues he faced as an SME starting a business in boom times, including the best way to fund sustainable growth

“Starting a business in boom times was a low-risk strategy. My wife Kelly and I financed it ourselves, we had the right capital and equipment to fund the first three months and if things didn’t work out, we knew we’d have no trouble picking up jobs again.”

So says Justin Cavanagh, Managing Director of IMIS (Industrial Mining Inspection Solutions), a Queensland business servicing Gladstone, Rockhampton, Emerald, Blackwater and the surrounding region.
IMIS inspects equipment and does quality control and integrity testing on industrial sites for clients across the mining, manufacturing, fabrication and petroleum sectors.
The four-year-old business is going strong despite the once booming Gladstone economy experiencing a tightening, but in the current market there is one thing Justin is very thankful for.
“To grow the business my wife and I eventually needed to find outside funding, and I’m very glad that we didn’t go with the option of an overdraft,” he says.
“With the downturn, the housing market has been hit hard in Gladstone, and if we’d gone with an overdraft our business could’ve been crushed, it would’ve been a really tricky situation.
“Having invoice finance instead of an overdraft removed the risk for our business.”

IMIS is a client of Scottish Pacific, Australia and New Zealand’s largest independent provider of debtor and trade finance solutions for SMEs.
Justin chose Scottish Pacific’s Selective Invoice Finance (SIF) product, an on demand line of credit secured by one or more outstanding sales invoice, to fund his business.
Selective invoice finance provides growing businesses with quick and easy access to funds, with no minimum period and the ability to pick and choose one or multiple invoices to submit at any given time.
“Picking and choosing which invoices we use allows us to have tighter control over our actual interest costs,” according to Justin.
“We started using selective invoice finance in early 2016. It works well in our seasonally quieter times and in solving the immediate cashflow issue when you are trying to get a project up and running.
“It’s also given me the confidence to approach bigger potential clients, knowing our Scottish Pacific funding is there. It takes away that small business fear of whether you can fund a major job, and it helps me to do the right thing by my employees.”

The business, which employees six staff plus casuals, has been able to concentrate on growth.
“Due to the cash flow changes made possible by Scottish Pacific we have had the ability to take on larger jobs. The turnover for the business has increased 30% in the past six months,” according to Justin.
The softening Gladstone market has not negatively impacted IMIS, because they have always targeted work in other key locations, and because clients come to them for highly technical work as well as basic projects.
“Finding work is not a problem –having the capability to finance large jobs was an issue. Early on, we quickly got to the point where clients wanted us to quote on increasingly large jobs. It was getting annoying rejecting these big jobs because they were beyond our financial capabilities,” Justin says.

“One job we had to decline, I knew the client would ask us to quote again the next year, and I was determined to be able to say yes without putting a financial stress on the business.”
Over the course of 12 months they looked at funding options. Justin had a trusted supplier who recommended their SIF provider, Scottish Pacific.
“I spent an hour on the phone to my supplier, getting their opinion on single invoice finance. They highly recommended Scottish Pacific. So I spoke to them, and it was set up so quickly,” he says.
“The benefit of SIF is that it gives us a major helping hand with cash flow in the busy part of the year, and we only need finance the jobs we want to. It’s there when we need it and is allowing us to take on much, much larger client projects with confidence.”

Selective Invoice Finance is a great option for seasonal businesses or businesses that only have an occasional requirement for additional working capital and prefer not to commit to a long term finance facility. It is ideal for businesses that experience fluctuation in work volume, or have seasonal trading issues.

Scottish Pacific (ASX:SCO) is the largest specialist provider of working capital solutions for SMEs in Australia and New Zealand, with more than 1600 clients in industries including transport, labour hire, manufacturing, wholesale, import and printing. Scottish Pacific handles more than $10 billion of invoices each year, providing debtor and trade finance funding exceeding $800 million. Established in 1988, the business has full service bases in Sydney, Melbourne, Perth, Brisbane, Adelaide, Auckland, London and China. Scottish Pacific was awarded 2016, 2015 and 2014 Best Cash Flow Lender by broker publication The Adviser, as voted by brokers, in their annual Non-Bank Lending Awards. They were named Best Trade Finance Provider 2015 at the international Trade Finance Global Excellence Awards. www.scottishpacific.com
Follow Scottish Pacific Business Finance on Twitter - @ScottishPacific - and on LinkedIn

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