Importer/Wholesaler, Richmond, Victoria Australia
Importer of electronic goods is about to go through a seasonal high and needs funding to pay for a shipment of electronic goods. Supply a single key distributor ie one major customer, meant, that although their monthly turnover figure of approx. $500k would qualify them for a full ledger factoring facility, as they only have one customer Fifo Capital is their only option.
They plan to use Fifo for 6 months or so whilst they look to distribute direct to the retailer.
Fifo agreed to fund the single debtor.
Where a full turnover factoring company couldn’t assist due to a debtor concentration issue, Fifo was able to step in due to its debtor insurance policy which mitigated this ‘risk’.