Simple, fast, confidential: Waddle’s factoring alternative

Posted by Russ on 06-Mar-2019 11:20:39
Russ
Waddle customer Daniel Gomes knows all about the growing pains that can affect successful business owners. In recent years his packaging company, Gensis has achieved some impressive growth. But as more orders come in, cash flow gaps began to create problems.

Waddle stories: Gensis Packaging

Waddle customer Daniel Gomes knows all about the growing pains that can affect successful business owners.

For over 20 year now, he has supplied Sydney’s cleaning industry. And in recent years his business, Gensis Packaging has achieved some impressive growth. But as more orders come in, cash flow gaps began to create problems.

As Daniel explains: ‘My business is very simple. We supply the cleaning industry. I import from China and I get a lot made locally. And our customers are always the same and they use the same thing every month. As they grow, I grow with them!

3 years ago, I was turning over about $80k per month, then 2 years ago $120k, last year was about $150k and this year it’s over $250k. Now I’m actually trying to slow the growth down a bit!’

‘The growing pains started to hit’

To help with his working capital situation, Daniel originally turned to a traditional factoring company. That is, a company who take over your unpaid invoices, advances you a percentage of the total and then manages the collections from your customers.

‘3 or 4 years ago I started factoring. Up until that point I didn’t use it, but we began to grow and that’s when the growing pains started to hit. We needed some help, we needed some extra cash flow.’

‘When the goalposts move, it makes it very difficult to plan my business.’

Whilst the business growth that Daniel achieved would have been impossible without the factoring company, it was far from a perfect relationship. He found the rules under which they operate confusing, it was time consuming and he was uncomfortable with them contacting his customers. But what choice did he have?

‘The demands of the factoring company were mostly unrealistic. I need to know the rules of how something operates. And then I work those rules within my rules until I’ve got a happy medium. When the goalposts move, it makes it very difficult to plan my business.’

‘With Waddle, it’s all very easy’

Enter Waddle’s BDM Aris. He introduced Daniel to our factoring alternative, an innovative platform that seamlessly connects with your accountancy software – in Daniel's case MYOB – and offers an instant line of credit based on your outstanding invoices.

‘With Waddle, it’s all very easy. It’s growing with you.

Previously it was very time consuming. With the factoring company, 3 times a week we had to send in batches of invoices – it took us 4 or 5 hours at a time. Which is a day and a half wasted!

Also Waddle is undisclosed. I tell my customers we no longer factor. They pay into our account, that’s all they know. A lot of my customers previously asked a lot of questions. “Who is this? What do they do? Will they chase me?” For people who don’t know about it, the first thing they think is that you’re in trouble.'

‘Waddle is a fraction of the others’

As well as the return of a day and half a week and getting the factoring company off of his customers’ backs, Daniel found that he was saving himself a tidy sum of money with Waddle.

'Waddle is a fraction of the others. That makes a difference too. If you save $20k / $30k a year, that’s a lot of money. I can put an extra person on…. just about.'

Topics: Waddle Stories

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