After his business bank would only consider giving him finance if he moved his mortgage to them, Queensland SME owner Aaron needed to find an alternative source of cash flow finance.

When you’re running your own business, cash flow can be the toughest thing to keep on top of – particularly when you need to invest in equipment for the business in the first place.

That was the situation facing Aaron, who opened up his first business venture in Queensland– a mechanical workshop specialising in fuel injection pumps, services, log book services, brakes and tyres for cars, trucks and marine – as soon as Covid hit in early 2020.

“I’d never owned a business before but had been in the industry for a long time, and wanted to go out on my own, "says Aaron.

“Everybody told me that it wouldn't work, that I was crazy launching a new business then, but I thought that if I do well now in the pandemic, nothing’s going to stop me.

“And then from there, it’s just grown.”

Cash flow challenges impact almost every business

One of the key challenges facing the business initially was building up relationships with suppliers, who were understandably cautious about dealing with a new business and offered limited credit terms.

In addition, Aaron had invested around $100,000 in machinery from Europe, but as the only business in the area offering fuel injection services, he attracted new business from fellow workshops as well as direct customers.

The business moved along well during Covid. However, in this game, you need to buy parts quickly. Naturally, Aaron encountered some cash flow challenges and approached his bank for assistance.

“I approached my business bank, and it was disappointing because they wanted me to actually transfer my mortgage and everything to them before they gave me finance.

“They just wanted more business out of me, and when they said I needed to put my house with them, it all sounded a bit dodgy, and I didn’t like it.” 

Looking for an SME lending alternative

After his disappointing encounter with his bank, he searched online for an alternative solution, discovered Bizcap, and was soon chatting with his Bizcap Lending Specialist, Mitch.

“Mitch was very prompt and professional with his communication, and the process was really quick. I think I got confirmation that my application had been approved and funds were on their way within an hour or so.”

That was in stark contrast to the process he was facing with his bank, with significant paperwork and approvals to wade through, which made Bizcap’s offer all the more attractive.

“Mitch explained to me what was going to happen at every step.

“With Bizcap, the fees are a bit higher than a bank, but during that time, I needed finance for cash flow. The process was quick and no hassle at all. It was all done in a very smooth manner– we didn’t have to go through the trouble of sitting down here and stressing about it.”

Aaron was approved for $43,000 and took a loan of $28,000 – which he used to pay bills and smooth out his cash flow – and is now able to look confidently to the future.

As someone who has successfully launched his first business during Covid, Aaron has some words of advice for people who are in a similar situation and need some cash flow help.

“In business, people do get stuck every now and then, and then people get scared about it.”

“But with companies like Bizcap, they do actually work with the clients, and make it happen.”

“I think that without taking a risk, you can’t get too far!”