Case Study: Wellington Pallets

“During the wet winter season, it’s crucial that we have cash in our hands all the time to ensure a constant supply of timber. Growth Finance makes that possible.”

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Case Study

Wellington Pallets

The key material for pallet manufacture is timber. The timber used for pallets in the Boland around Paarl is supplied by informal timber merchants, cut from clearing tracts of land, mountainsides and riverbeds when farmers grant them concessions to clear and take the timber.

Says Jermaine Davids, CEO of Wellington Pallets: “In the summer months, the guys truck the wood into town, usually giving us a call an hour before they arrive in our yard. If we don’t have cash to pay they just drive past us and go to the next factory and the next one until someone has hard cash for them. We must have cash for them on very short notice else we don’t get and we run out of stock to make pallets.”

With this cash for timber system, Welington Pallets cannot afford to wait 30 or 45 days for their customers to pay their invoices. “In winter it’s terrible. The guys can’t get onto the mountain to cut for weeks sometimes and when they have, the competition is very high for that wood. So we have to buy everything we can get from April to hold and dry the timber.”

“Growth Finance pays our February and March invoices early so we can buy wood and keep our staff busy making pallets for our fruit export and food clients to have pallets through winter. It’s a constant fight for timber, but we have partnered with the guys that make it happen at Growth Finance.“
SUPER SIMPLE FUNDING

Is invoice discounting for you?

You get immediate access to income you have already invoiced but would otherwise only receive from your customer at a future date (30 or 60 days later) because of your agreed payment terms. Discounting invoices enables your “terms” business to run as a COD business. You then enjoy all of the benefits of a cash business whilst being able to give your valuable customers payment terms; often a stronger negotiating tool than lower prices. Invoice discounting accelerates your cash flow and opens up so many trading options.
FAQs

How does it work?

1. Deliver your products (or services) to your customers and invoice them on your normal 14, 30- or 60-day payment terms
2. When you need access to cash flow, send one or more of your outstanding invoices to us
3. Your customer confirms the invoice
4. We pay you up to 80% of your invoice immediately
5. Your customer pays the invoice directly to us
6. When your customer pays, we pay you the other 20% of your invoice less our fee

Is invoice discounting for you?

Looking to grow turnover?

New customer requires a 45-day account, but your cash flow won’t stretch?

Landed that dream order and need access to your cash locked in your debtor’s book?

Unexpected business expense?

Is your bank not ready to grant or extend your overdraft?

Yes?
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Do you qualify?

Time in business

6 months or more of revenue

Annual turnover

R1m +

Location

Registered in South Africa