Fast growing specialist financier, NWC Finance, is experiencing record demand from accountants, whose clients are suffering from cash-flow problems and struggling to refinance their banking facilities, pay the ATO and creditors.
NWC Finance has seen a 30 per cent rise in the revenue over the last year off the back of demand for its short-term finance solutions as a result of the major banks tightening their credit criteria.
Mr Joe Morello of NWC Finance said “There has been a surge in calls this year from accountants and brokers whose clients’ finance has fallen over literally hours before settlement of purchases or expiration of finance facilities, slow or lack of payment by debtors or an urgent need for new capital.
“We are finding this is happening more often as the banks are pulling their funding for crises, often too late for clients or arrange alternative finance from top and second tier banks.
“This is a major concern for accountants whose clients often run out of time and alternative lenders to save their precarious financial position”, he added.
CASE STUDIES – CASHFLOW CRISIS SOLVED
1. An accountant recently approached NWC Finance to assist with a client’s urgent cashflow shortage to purchase stock for their business. The borrowers were in a distressed state as they were going to lose the stock due to their first mortgage about to expire.
The client’s existing financier did not extend their loan to provide the extra cashflow, leaving them in great financial difficulty. NWC Finance urgently paid out the first mortgage against the borrower’s commercial building and residential property and raised the extra funds to assist with the purchase of stock. NWC Finance assisted the borrowers with a loan amount of $2.1 million over a three month period.
2. $765,000 council payment within 24 hours
One of NWC’s clients was ready to sub-divide their property, however they owed the local council $765,000. We made the funds available within 24 hours via a second mortgage over a pub they had recently sold.
3. $250,000 cash within 24 hours
Our client was faced with the prospect of losing their business if they didn’t immediately pay unsecured creditors $250,000. We made the full amount available within 24 hours via a first mortgage over the client’s unencumbered property.
“The result of our short funding at an average of three months almost always saves a company and the assets of the owners, who are more often than ever fall into liquidation and lose their homes and other assets”, said Mr Morello.
NWC Finance lends short term finance of up to $20 million on a first and second mortgages, to prevent wind-up notices and other pre-insolvency events and also general business transactions.
To learn how NWC Finance can assist you or your client with a fast and efficient funding solution, call 1800 628 303 or email info@nwcfinance.com.au
