Zsolt Bircsak of Fifo Capital Newcastle has brought Fifo Capital Supply Chain Finance to the Hunter region to help solve the uncertainty around business supply chains.
Zsolt said today’s business leaders know their supply chains are an important, integral component of their overall business success, however feel hindered by the Australian financial system’s uncertainty and inefficiency.
Companies with cash or strong balance sheets want better returns, and companies who need cash want more access to it at lower rates.
“Fifo Capital Supply Chain Finance enables both customers and suppliers to get the benefit of trading on the terms they want or need,” Zsolt said.
“Customers can increase profitability, whilst the supply chain becomes robust and free of debt. So customers improve their bottom line, while suppliers no longer need to wait for payments, and both win.”
The program aims to give customers the power to protect not only their cash flow, but also that of their suppliers.
Zsolt said the Fifo Capital Supply Chain Finance system has a unique benefit of acting like an off-balance sheet investment where businesses can earn a return (on funds they never invested) every time a supplier uses the system.
“Because suppliers can get paid earlier, they can afford to support customers with more or larger orders, helping customers achieve their growth plans, reducing the amount of working capital required to fund a supply chain, and having more cash to fund growth. For the customer it is an off-balance sheet, debt-free solution,” Zsolt said.
“Customers have complete control over how they benefit from the return on investment – either directly increasing their profitability, extending their own credit terms, or passing the return back to suppliers.
“In most cases, the amount of working capital required is dramatically reduced at minimal or zero cost.
“Fifo Capital truly is the ethical supply chain finance solution where customers earn a ROI on funds they never invested.”
The tool is designed to allow businesses to better control their own cash flow interruptions and be less likely to suffer supply issues, therefor providing more time for focusing on areas in the business that really matter, such as growth and innovation.
IMAGE | Zsolt Bircsak of Fifo Capital Newcastle.
