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Tuapeka Gold Print - Jim Robertson

Tuapeka Gold Print managing director Jim Robertson says while the bank was always happy to offer his company and overdraft, the constant need to renegotiate the overdraft was becoming a real problem for the business. “The faster we grew, the more money we needed,” explains Robertson. “But we had to organize more - go back to the bank and start a whole new overdraft agreement.” Seven years ago, Robertson found a different way of keeping Tuapeka Gold Print running smoothly. He partnered with SCOTPAC using their factoring service.

“With Factoring, the more you invoice, the more money is available automatically,” explains Robertson. That’s because the amount of credit available is solely dependent on the invoices coming in.

“They value our invoices higher than the bank does, because they see the money coming in and they do the collection,” he says. “Because of that, they have a lot more confidence.”

“We decided we should be doing as much in-house that would improve our service, and outsourcing everything else.” “Debtor control came under ‘everything else’. SCOTPAC does a great job, and it frees our people up to fill orders-which is what we’d much rather be doing!”

“If you look at it in a commonsense way, just how it can help the mechanics of your business work, it’s a no-brainer,” he says. “The people who said to me seven years ago that it looked expensive can’t believe how good it is when they look into it.”

It’s paid for itself, according to Robertson, because SCOTPAC’s collection service has reduced the average debtor days-the length of time between issuing an invoice and the invoice being paid-from 58 to 45 days, leading to earlier payments and more bank interest. “I can’t understand why more companies aren’t using it,” says Robertson. “All you’ve got to do it improve that collection ten or 15 days and the interest pays for itself.”

As Robertson looks back on the past seven years his business has used factoring, he’s a happy man. “Factoring is the best thing since sliced bread!” he says sincerely. And it’s no wonder he’s happy; Tuapeka Gold Print has tripled in size over that seven-year period.

Selective Solutions

"The business we are in has no hard-core assets and doesn’t lend itself to any other form of finance," said Jacob. "Our greatest asset is our debtors and assigning our invoices to SCOTPAC has been one of the best decisions we have made.

"Initially, I only wanted a facility for $500,000 but I have to thank Brendan Green for insisting I take out a facility for $2 million."

"As you only pay for what you use on this facility, it has proved perfect for funding strong expansion and providing peace of mind during seasonal spikes such as GST.

"If we need the money for expansion, new purchases or for seasonal cash crunches, it is there. That increases our efficiency and better positions us to take advantage of opportunities as they arise."

Jacob, a chartered accountant by trade, said SCOTPAC’s online accounting system, "Open Account", was brilliant and allowed him to plan the company’s cashflow 24 hours a day.

Kevin Moses BMV International

“SCOTPAC has allowed us to become a cash purchaser, allowing us to achieve growth in three years that may have taken ten years under normal circumstances.”