The decision to use Earlytrade was all about cash flow for Merhone director Josh Rhone.
Previously the Castle Hill-based industrial electricians have had to wait on payments from a major client with terms that could have been more than two months.
“That is a killer for us little guys,” Mr Rhone says.
“[Now] we get paid every cycle, so it’s weekly instead of up to 45 days and end of month.
“It was literally the only reason — cash flow — and that is a big reason.”
Second-generation, family-operated Merhone provides industrial electrical capability for projects and ongoing maintenance of major equipment.
Their small staff team, with additional support from subcontractors, services and maintains the complex electrical operations of the Cleanaway South Windsor recycling plant.
“They’ve got pumps and processes that we look after constantly,” he says. “If they want a new system in there, we do the project from the ground up and get it running. There are lots of little things every day where you’ve got to learn and adapt.”
So the team at Merhone want their own business processes to be easy.
Mr Rhone tried Earlytrade as an alternative to factoring and traditional debt-based finance early in 2021. A few days later the company had locked into a low rate for their payments from Cleanaway for the year.
“I just thought, ‘Let’s not muck around’,” he says. “We just factor it into our profit and losses and it’s just so minimal compared to having that cash flow.
“Liquid money is always better to have than being owed it.
“It goes every Monday and Thursday pay cycles at Cleanaway. As soon as it’s approved, it gets paid in the next cycle. Even if it’s seven days, it’s nothing. No one pays in seven days, even people on seven-day accounts don’t pay in seven days,” he says, laughing.
He says using the platform has been very easy, with fast and simple processes.
“It’s done,” he says. “There are so many balls in the air when you run your own show, this is just one less thing to worry about. You put a bill in, it gets approved, and the money is in the bank.”