CLIENT SUCCESS STORY
Supporting Big Business Cashflow
It's not only small business who occasionally need a cash top up! Citymove Removals CEO James Russell used a ZipLoans Business Loan to allow for decreased cashflow during the quieter months, and allow for vital capital expenditure.
After starting in the business working in the trucks 13 years ago and working his way up to CEO, James Russell is well across the many changes that have occurred in the removals industry. Citymove Removals, a national removalist company, services domestic & interstate moves as well as larger corporate relocations.
One of the major challenges in the industry is the high seasonality or work, resulting in predictably large swings in overall cashflow.
Large swings in cashflow
“Removals is a high ticket product with low margins, and it's vital to make sure you have all your ducks in a row, and manage cashflow very carefully” says James.
“Every year after EOFY they industry hits a major cash crunch, but leases and staff still have to be paid! Also, we go through amazing amounts of packaging materials such as bubble wrap, sticky tape, and boxes, and you get a much better price if you buy in bulk”
Not only do seasonal cashflow crunches cause the business to have to closely monitor budgets, they also make it difficult to make capital purchases, or to buy supplies needed at an acceptable price.
“While we have a great relationship with our bank, things can move very slowly at times, and it was refreshingly quick and easy to get set up and running with ZipLoans.
Being a larger company we have high expectations of vendors and suppliers, and ZipLoans more than met all of them, and I highly recommend their services.”
CEO - Citymove Removals
Citymove approached the bank for a loan, but found there to be a lot of red tape, and payments were not flexible. “Also, because we have such high seasonality, the banks ask a lot of questions, and overall the process felt like overkill” James says.
“We have high expectation of our vendors & suppliers, and ZipLoans more than met all of them. I highly recommend their services!”
A better way
In contrast to large amounts of red tape with the bank, James found the process of applying for, and receiving, a $20,000 loan from Zip Loans, powered by Prospa to be, “refreshingly quick and easy”.
“They just made life really easy. We wanted to buy packing materials in bulk, get all of our trucks serviced, and build out our marketing campaigns, which would be very difficult without some form of cash injection”
James also appreciates the flexibility of the loan: “We have high expectations of our vendors and suppliers, and ZipLoans more than met all of them.. payment dates were flexible, and we were able to negotiate on the rate.”
The loan has enabled Citymove to purchase much needed supplies in bulk, which would not have been possible during the usual quiet season cashflow. “We were able to purchase packing materials in bulk, saving us a tonne of money. We were also able to service our entire fleet as well, and all during the quiet times. Normally this is particularly tricky to do”
“After our first conversation with ZipLoans we knew we'd come to the right place. Their staff were friendly, knowledgeable about seasonal business, listened to our needs, and responded with relevant services at the right price point. I can't recommend them enough!”
ZipLoans helps small (and big) business owners get access money – fast. Apply now or call 1300 745 209 for more information and talk to our friendly staff.
The smarter way to finance your business!
Deferred payment offer is available on new loans only. For business loans settled between Monday 14 May 2018 and Thursday 31 May 2018 inclusive, no loan repayments required from the loan settlement date to 1 July 2018 (inclusive); loan repayments begin on Monday 2 July 2018. For business loans settled between Friday 1 June 2018 and Saturday 30 June 2018 inclusive, no loan repayments required from the loan settlement date for a period of 4 weeks (inclusive); loan repayments begin the day after the four-week deferral ends. Total loan repayment term will be extended by the period of time equal to your loan payment deferral; offers only available to customers with connected electronic bank statements; offers not available to partner loans on a partner red-hot offer rate; not valid in conjunction with any other offer; offer may be withdrawn without notice; standard approval criteria and terms and conditions apply. **Subject to Prospa’s standard credit approval criteria. Terms and conditions apply.
1. As at 7 May 2018.
2. This is not tax advice. Check with your tax advisor before you buy an asset to ensure you and the asset are eligible. See the ATO website for more details.