Beyond working with a range of individual customers, Naarm Autohaus also services vehicle fleets for government organisations in Victoria. Sam explains that this aspect of the business and bidding for public sector contracts, presents a key growth avenue.
To service an ever-growing customer base, Sam must procure parts from suppliers, purchase tools and equipment and pay staff. Only once a job is complete will Naarm Autohaus invoice customers. Sam says that for small but growing businesses, having access to cash flow is important to ensure operations run smoothly and that the business maintains its reputation for timely and high-quality servicing.
Sam explains the business has some customers that pay on 31-day terms and during big months for repairs, Naarm Autohaus will have a significant upfront outlay on parts and labour while waiting to be paid. “That puts a strain on our cash flow and limits access to funds we could be using to keep our customers happy and growth plans on track,” Sam says.
After evaluating the best options for the business to have flexible access to funding to bridge such cash flow gaps, he decided to put a CommBank Business Overdraft in place.