Funding progress claims is complex. Contract clauses relating to set-offs and damages mean very few lenders will advance against these invoices.
Upon engagement, our CFO undertook a detailed review of the company’s operations and financials. One of the first discoveries was that the client had no clear understanding of their true cost of production, particularly in relation to labour costs, which were being significantly underestimated.
| Asset | Balance Sheet | Eligible Amount | Advance Rate | Maximum Advance |
|---|---|---|---|---|
| Accounts Receivable (Debtors) | $100,000 | $80,000 | 85% | $68,000 |
| Inventory | $50,000 | $40,000 | 50% | $20,000 |
| Plant & Equipment (Equity) | $100,000 | $80,000 | 60% | $48,000 |
| TOTAL LIMIT | $200,000 | $136,000 |
