Debtor Finance Case Study
Michelle ran a specialty retail store out of her home in Australia.
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Debtor Finance Case Study: Fashion Accessories

Clients would special order purses, scarves and accessories that were hand-crafted by Michelle. Since most of Michelle’s clients consisted of consignment stores and large retailers, the work was done in bulk and the invoices were sent out with a 30 to 60 day pay date. While this was a convenient way to do business, Michelle found herself spending more than was coming in.

Michelle knew she had a substantial amount of money coming to her in the next 30 days. However, the problem was she needed cash to purchase supplies for another order of 100 handbags. This is something she didn’t have on hand.

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Michelle's bank refused her loan application

Michelle went to her local bank — a bank she’s done business with for almost 20 years. She applied for a loan, but when she wasn’t able to provide the financial statements the bank required or proof of steady income, she was denied a loan.

We listened to her situation and assessed her needs. Michelle needed cash fast to cover expenses, but she had a big payday coming to her within a month. Our financial experts determined that a debtor finance loan was Michelle’s best option.

With a debtor finance loan, ALC Commercial was able to leverage Michelle’s accounts receivable ledger. This gave her an advance on the cash she would have received at the end of the month. Michelle was able to take that advance and purchase the supplies she needed. Best of all, she didn’t have to use her high-interest credit cards or waste her line of credit.

We listened to Michelle's unique story

Michelle’s clients paid a few weeks early and she was able to pay off her debtor finance loan. Thanks to the help of ALC Commercial, Michelle was able to get back on track with her finances. Now Michelle uses ALC Commercial for all of her financial needs. Currently Michelle is looking to open a local retail shop in Australia. She is working with ALC Commercial to secure the commercial loan she needs to get it done.