The cash flow challenge for civil & infrastructure contractors
Despite being in high demand, Trafficwerx NT was often left waiting 30 to 90 days to be paid. In the meantime, they were covering all upfront costs, including wages, safety equipment, signage and vehicle upgrades without any certainty around incoming cash.
As Managing Director Chris Boyer put it: "We were carrying clients and ultimately being the bank." The finance team spent hours each week chasing payments, while capital constraints delayed upgrades and slowed growth. Accessing bank finance was difficult, time-consuming and placed unnecessary pressure on the business.
The solution: Payments on Demand for civil contractors
By integrating Marmalade's Payments on Demand platform, Trafficwerx NT started issuing invoices with updated payment details enabling them to choose which invoices they wanted paid early. Payment now arrives the same day an invoice is raised, allowing the business to better manage wages, equipment purchases and forward planning.
Marmalade also integrates directly with Xero, making it easy to reconcile payments and automate AR processes. Staff were trained and supported by Marmalade's onboarding team, with seamless adoption across the accounts department.
Results
- Doubled in size in just over 2 years
- 30+ hours/month saved in admin follow-ups
- No need for loans or bank debt to fund growth
- Same-day payment on invoices issued
- Smoother financial operations via Xero integration
Commentary
"Marmalade has allowed us to grow our business and take it to the next level, without going to the banks and borrowing under difficult terms... They've taken the pressure off. We can now focus on growing, not chasing."
