Supplier Payment Due: Urgent Short Term Finance Before Your Customer Pays

Yes, your business can borrow against its factory property to pay the supplier, as long as the plan to repay us does not depend on the receivers paying those invoices. Receivers act for the lender that appointed them, so whether an unsecured supplier is paid, and when, is uncertain. We look for a repayment source with a date, such as a property sale or a bank refinance. Send us the property details, the supplier invoice and your repayment plan. We do not give insolvency advice, but we can connect you with insolvency specialists in our network about your claim for the $380,000.

• →Working capital loans

Yes, with a little to spare. 70% of $1,200,000 is $840,000, and after the bank's $500,000 that leaves $340,000, enough for the $310,000 with $30,000 left over. Our own valuation sets the final figure. That would be a second mortgage, from 11.95% p.a., so check your bank loan agreement and ask your solicitor whether the bank must consent before it is registered. The sale of the goods repays us, so send the customs entry and the customer orders for that stock when you call.

• →Second mortgage finance

A secured business line of credit suits this better than a single loan, because the gap repeats on every order. It goes up to $2,000,000, runs for 6 to 18 months and is secured by a second mortgage, so you draw as orders are delivered and repay as the customer pays. Use that time to settle the longer-term plan with your accountant, such as a bank facility sized for 90-day terms or prices that reflect them.

• →Secured business line of credit

Compare the dollar value of the discount with the interest on the loan for the months you hold it, plus the costs of setting the loan up. Our rates are from 9.7% p.a. on a first mortgage and from 11.95% p.a. on a second, so your accountant can run the comparison on your real dates. The repayment date matters as much as the rate. The loan is repaid from the sale of that stock, so set the term to the date your customers pay for it, not the date the stock arrives.

Yes. We look at the payment that is documented and not in dispute, so a loan repaid from the $450,000 can still work, provided the property supports it within 70% of its value. Treat the disputed $250,000 as uncertain in your plan, in both amount and timing. If you also need funds to cover that part, the repayment for it has to come from another source, such as a property sale or a refinance.

It can. A single loan is paid out in full at settlement, $600,000 for the deposit and $1,400,000 for the balance, and the business holds the funds until the balance falls due. A secured business line of credit can suit better, because you draw $600,000 for the deposit and the rest when the balance is due, within its $2,000,000 limit. Either way, the customer's payment 90 days after delivery repays us. Send the purchase order and your customer's order with it.

Yes. A term of four to five months covers a September supplier payment and a January payment from the retailer, and the retailer's payment repays the loan. Send us the supplier invoice, the retailer's purchase orders with their delivery dates and the property details. We set the term past the latest payment date, so a late delivery does not leave the loan due before the retailer pays.

• →Retail lending

Our assessment does not depend on a trade credit insurer's limit. The insurer decides how much unsecured credit your supplier can give you. We lend on property, so we look at the property, a loan within 70% of its value and the date you will repay us. Tell us the size of each order and when your customers pay for it, and we can work out whether one loan or a line of credit suits the new terms.

Yes, where the property supports it. The loan funds are paid to your business, which pays the forwarder, and the customers' payments for the released goods repay us. Storage charges increase the longer the containers stay, so send us the forwarder's statement, the customer orders and the property details today. Terms can follow within hours, and settlement within 24 hours of signing.

• →Wholesale lending

It can, through a secured business line of credit rather than a single loan, because the money to repay it arrives gradually as you sell. The line of credit goes up to $2,000,000 for 6 to 18 months, and you repay as customers pay for the finished goods. A single short term loan works where one dated payment repays it, such as a large customer order already contracted. Send us the supplier's notice of the price rise and your sales forecast, and we can tell you which structure fits.

• →Manufacturing lending

It can, with a term long enough to cover a review that takes longer than expected. Our terms run up to 24 months, and we agree the term with you before settlement. Send us the ATO's letters about the review, the refund amount and your supplier invoices. If the review may reduce the refund, your accountant can tell you how much is at risk, and the plan should repay that part from another source.

Yes. We can fund the supplier payment now and be repaid when your customer pays. Send us the supplier invoice and the customer invoice or contract, so we can see both dates.

Yes. The Australian Border Force requires GST on imports to be paid at clearance unless you are approved for deferral, so the cost falls before the goods are sold. The loan can pay the duty, GST and freight, and the sale of the goods repays it.

No. We do not lend against invoices or receivables. Your customer's payment is how the loan is repaid, and the security is a property you or the business own.

Yes. We can pay the next order on delivery and be repaid when your customer pays for the goods. Send us the supplier's notice and the order, so we can see the amount and the date.

Yes. An overdraft increase can take weeks and depends on up-to-date accounts. We lend on property and a clear repayment date, so we can move faster when a supplier payment is due.

No. A gap that recurs every month is not solved by a short term loan. It usually needs a longer-term change, such as new supplier terms or better customer payment terms. Your accountant can help you find the cause, and a line of credit may help while you make the change.

We can cover a gap on the same day where your scenario allows. For a line of credit, the first drawdown can follow as soon as the facility settles.

• →$250,000 for a café's suppliers and costs in 36 hours
• →$800,000 in 48 hours for a new freight contract
• →$2.4 million settled in 4 business days while clients paid late

We fund cash flow gaps for wholesale, manufacturing, construction, retail and transport businesses, among others. Each has its own timing, from import clearances to progress claims, and we look at the dates that matter in your industry.

• →Wholesale lending
• →Manufacturing lending
• →Working capital loans