Money

Issue No. 34 - April/May 2007

Debt financier finds small niche

A business that sells on credit terms is usually chronically short of cash; the common refrain is “I can’t pay my suppliers, because my customers haven’t paid meâ€�. It’s a vicious circle and there is no obvious way out.

For a growing business that is increasing its sales, the problem is worse, because the gap between available cash and required cash keeps getting bigger, says Richard Pomeroy of AddCash Finance.

Richard saw an opportunity to deal with the clients too small for big financiers to notice.

“I set up AddCash to help the smallest businesses in the marketplace only, and yet offer a quality, fully featured product,� Richard says. AddCash offers debtor financing, where the client borrows against existing, unpaid invoices. Target clients are micro to small enterprise businesses, typically with annual sales under $500,000.

“These businesses have great difficulty in getting cashflow finance — or indeed any form of finance â€...

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