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Improving the payment times for labour-hire provider, Labourpower Recruitment Services, has made it easier to maintain and enhance cash flow across their Australian business.

The national industry recruitment agency has used the Earlytrade platform in recent years to cut the average number of days to collect payment, building on their business goals.

Finance and Commercial Manager Mal Moldrich says using Earlytrade has added value to their current financial facility and further reduced their days sales outstanding (DSO).

“Management of our cash-to-cash cycles is critical in the normal course of business as our supply chain is payroll and the associated oncosts including tax, super and insurance,” he says.

“Earlytrade has improved our cash flow by reducing DSO. We use it on all outstanding invoices for the specific customer as they arise.”

Labourpower Recruitment Services provides services across the country and across sectors.

Each week it matches more than 20,000 workers to contractors to jobs in industries spanning transport and logistics, contract packaging manufacturing, food processing, waste and recycling and warehousing.

They experienced the upheaval of COVID-19 as a supplier of essential workers.

While cash flow was constant, it was essential – as always – to keep an eye on.

Mr Moldrich says they were introduced to the Earlytrade fintech platform by a customer that was already using it within their supply chain management.

He says it was easy to use and already linked in to that major customer.

For one of the key considerations for their business, invoice visibility, there has been no downside.

“This was our primary aim as we maintain close visibility over our billing and accounts receivable function system due to the essential nature of good working capital management to our business,” he says. 

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