The Global Financial Crisis (GFC) of 2008 created huge liquidity problems developing huge issues between many companies and their primary banks. This fate seems to have conspired in recent years to alert businesses across all industry sectors to the need to look for alternative sources of finance. One company that chose to be an alternative source of finance in order to provide capital for businesses is Fifo Capital.
Fifo Capital is a leading provider of business finance solutions for corporations through SME’s with expert finance skills at the ready to support cash flow and working capitals. It introduced a new and innovative way of invoice finance providing fast and flexible funding to businesses within 24 hours without the need for real estate security.
The inception of the Company
Incepted in 2008, the company gradually progress to an annual turnover of almost $300m in 2018 from $2m in 2009. Today the company has over 50 offices throughout Australia which has funded around $1b to more than 3,000 businesses within 10 years.
Due to GFC around the corner in 2008, Australian businesses were hit hard. Major Australian banks began to tighten up their credit rules impacting many businesses. It restricted the accessibility to financing from their banks which they previously had access to. With a focus of providing an alternate source of finance to the businesses, the company was incepted.
Wayne Morris, Chief Executive Officer, says “Fifo Capital seized this opportunity in 2008, allowing businesses to access fast cash flow to hydrate their business with cash, but without the need for real estate security.”
Introducing Innovative Ideas to the Market
Again in 2014, the company introduced ‘unsecured’ business loans. Its supply chain finance was the first to market with an off-balance-sheet option allowing businesses to pay the supplier and/or extend their own payment terms. This enables businesses to operate without the need for their own capital by coupling with the company’s leading invoice finance solutions.
With a market-leading launch of technologically innovative supply chain finance facility in 2017, Fifo Capital was known as ‘Fintech with a face’ and a new leader in innovative finance. Introducing Trade Finance in mid-2018, it eradicated the traditional forms of Trade Finance. Offering clients the ability to pay domestic and overseas supplier deposits and pre-shipment payments, it eliminated the need for a Letter of Credit when dealing internationally.
The recent act of Financial Services Royal Commission in 2019 influenced the banks to further tighten their credit requirements. This affected the growth of businesses by restricting access to the funds. Acknowledging the current situation, Fifo Capital changed the rules again in 2018/19 by allowing the business to access working capital without taking any debt. Its insurance-back security meant that the businesses could pay their suppliers early and extend their own business terms, an off-balance-sheet with no debt.
Maintaining a Strong Customer Base
Businesses can survive with customers, but in order to thrive in the market, it is important for a business to maintain loyal customers. Fifo Capital has a policy of a customer-first approach. It prioritizes the need of the customer while developing something new. It provides each client with a designated relationship manager irrespective of their size and organizes face to face meetings with quality service. All clients receive the same quality of one-on-one service experience.
Mr. Morris says, “We don’t wait for the competition to innovate – we back ourselves and lead the way at every level.” Fifo Capital takes pride in its service and speed of funding which the banking sector has moved away from. The management drives the business to be nimble with expert and innovative thinking, a can-do approach and teamwork to move parallel to the market.
Aiming to Change the Way Businesses Access Working Capital
Fifo Capital has a knack to combine technology and clever employees. Working Capital Solutions provided by the company helps businesses with a long-term solution. It has a tendency to solve the incognizant issues of a business. It has become the thinking person’s financier’. In a world where algorithms have taken over, the company is solving problems with a genuine human sight with a technology finance piece alongside.
It aims to make a difference in the way businesses access working capital. Fifo Capital’s goal is to become one of SE Asia’s leading providers of working capital through quality service, smarts, and innovations. Mr. Morris says, “We can all follow the competition, we can all strive to simply take market share, but to dare to question the status quo, and ask why should we do things this way, gives Fifo the freedom to explore alternative financial solutions.”
