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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.

SP GWJune 2017

Knowing there’s cash on hand to pay the printer, and not having to chase invoices each month, are what makes invoice finance good news for New Zealand small business owner Martin Leach.

Martin publishes Ponsonby News, a magazine founded in 1989 that covers the trendy Western Bay area of Auckland, an area similar to Australia’s Paddington, Brunswick or New Farm.

In 2004 Martin took over the business after moving from the United Kingdom for a change from his career as a business-to-business magazine publisher.

He transformed Ponsonby News from a newsletter into a full colour magazine, which now has 18,000 copies distributed by hand each month and an audited 69,000* readers per issue.

“People come from all over Auckland for the shopping, night life and restaurant scene (there are 50 bars and restaurants along Ponsonby Road alone), and they rely on Ponsonby News for what is happening in this vibrant district,” according to Martin.

“The business has grown a lot since 1989, and despite tough competition from social media and apps, we have a loyal group of advertisers who like to see their material in print, and a loyal group of readers.”

Martin has partnered with Scottish Pacific for business finance since he took on the publication more than a decade ago. Coming from the United Kingdom, where invoice finance is very popular, he knew how it worked and was keen to use invoice finance to fund Ponsonby News.

“Back then the turnover was around $250,000 per annum, and that figure has grown considerably. What I like is that our facility with Scottish Pacific has grown in step with the business,” Martin said.

“Our biggest expense each month is printing. Invoice finance allows us steady access to funds to pay the printer, as well as our contractors, on time.

“We do have an overdraft but it is invoice finance that keeps our cashflow ticking over each month.

“The cost of invoice finance is money well spent: Scottish Pacific chase up our invoices for us and I’d much rather pay a small fee for this than pay a much larger sum to employ someone each month to chase money and get our invoices paid.”

According to Martin, Scottish Pacific’s New Zealand team are great to deal with, very helpful and professional.

“Things are ticking along nicely, I’m very happy with our little business and the role it plays in our vibrant Auckland community,” he said.

Scottish Pacific’s New Zealand general manager, Greg Wertheim, congratulated business partners Martin Leach and Jay Platt on their 10-plus years with Scottish Pacific. They are one of a number of long-term clients serviced in New Zealand.

“One of the misconceptions of invoice finance is that it is a 'lender of last resort finance solution for businesses' - that is not the case. Ponsonby News is a great example of a solid business that has used invoice finance, for a decade now, to smooth out its cashflow each month,” Wertheim said.

“We’ve seen their business grow, and we’ve been delighted to help with that growth journey.

“Invoice finance suits many businesses, and is especially popular in printing and recruitment businesses where there are large outlays (respectively, for printing the magazine and for labour hire) that owners can account for before their customers pay them.” It’s ideal for other industries such as transport, wholesale, manufacturing and business services.

“The beauty is that no real estate security is required, the invoices are the security. This brings owners great peace of mind, and allows them to go about the work of growing their businesses,” he said.

Invoice finance is a line of credit secured against outstanding sales invoices, not real estate. Also known as factoring or debtor finance, it provides a business with fast access to working capital that would otherwise be tied up in accounts receivable for 30 or 60 days or more to help meet operating costs or fund growth. It is one of the most versatile funding solutions available to small and medium-sized businesses because it can be more readily accessed, can increase overall funding, and improve cash flows quickly which can lead to other efficiencies in the business. Invoice finance is linked to the value of sales, so the level of funding will increase as the business grows. With a factoring facility, Scottish Pacific offers an accounts receivable service which will save you valuable time and money. What’s more, you can focus on what is really important - managing and growing your business.

Ponsonby News is a full colour magazine for the greater Ponsonby area in Auckland New Zealand, and has been published monthly since 1989. www.ponsonbynews.co.nz

Scottish Pacific Business Finance is part of the Scottish Pacific Group (ASX:SCO) and is the largest specialist provider of working capital solutions for SMEs in Australia and New Zealand. More than 1700 clients in industries including transport, manufacturing, wholesale, import, labour hire and printing benefit from their broad range of trade and debtor finance solutions. Scottish Pacific handles more than $14 billion of invoices each year, providing debtor and trade finance funding exceeding $1 billion. Established in 1988, the business has full service bases in Auckland, Sydney, Melbourne, Perth, Brisbane, Adelaide, London and China. Scottish Pacific is an ASX 300 company.

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