Linda Soblusky, factoring and debt finance specialist at Fifo Capital, explains how businesses with cash flow problems can utilise short-term funding to keep their business flowing.

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Linda Soblusky,
factoring and debt
finance specialist at
Fifo Capital, explains
how businesses with
cash flow problems
can utilise short-term
funding to keep their
business flowing.
Tell me a little more about your business
and exactly how invoice financing works?
Factoring and debt finance has been around for many
years. Invoice financing, or factoring as it is sometimes
known, is a reputable source of short-term funding for
many successful businesses. An example of how it works
is – assume you have just invoiced a client to the value
of $50,000. After looking into the credit worthiness of
your customer, Fifo Capital will purchase the invoice from
you. We immediately pay up to 90 percent of the invoice
face value and the balance we pay, less our fees when the
customer settles their account. Typically when we first do
business with a client, this entire process could take 24
hours, but for repeat business with the same debtor the
turnaround might be as little as two hours. At any stage,
the amount of paperwork is negligible. We prefer to meet
with clients for the first transaction, but after that we do not
expect anything more than a fax providing the details of the
invoice the client would like us to finance. If they prefer to
meet each time, this is not a problem either.
What was the idea behind this business and
have you always worked in this field? The idea
behind Fifo Capital is to work alongside banks, mortgage
brokers and financial advisers to assist businesses of
any size with their cash flow problems. Our services are
personalised to suit each of our clients’ needs and as
each franchise is privately owned, we can make decisions
immediately. I have worked in a variety of administration,
finance, HR and management roles and have always had
30
Words by Angela Faherty
Photography by Andrew Watson
a great passion to be self-employed. With a young family,
working for myself and from home was a dream come true.
I saw Fifo Capital as a chance to grow the business I already
had and to also provide a better service to my clientele.
Who is the service aimed at and what benefits
does it bring to users? This service is aimed at
small to medium-sized businesses that are in growth
mode or which, for a variety of reasons, need short-term
cash to meet typical expenses such as wages or creditor
payments. The benefit to businesses is that they can keep
their business moving, paying creditors and staff on time,
they can keep growing their business without the struggle
of juggling cash and there are no long-term contracts.
What kind of companies use this service?
Fifo Capital deals with business to business transactions.
Common examples of businesses and companies that use
our services are printing firms, engineering businesses,
manufacturing businesses, temporary labour hire,
importers, transport companies, wholesalers, electricians,
roofers, scaffolders and plumbers.
What are your plans for the future? Currently I
am trying to establish a name for myself within the Cairns
region, however I can provide assistance to any business
in north Queensland. I would like to grow my services in
Townsville and Mackay in the near future, but will focus my
marketing in Cairns for the time being.
Fact File
• Fifo Capital provides invoice
financing or factoring services
to businesses.
• Using these services does
not affect present or planned
borrowing arrangements.
• Single or multiple invoice
purchasing is available.
www.citylifemag.com.au