Empowering Growth in the Animal Pharmaceuticals Sector

Background

Location: Australia
Industry: Animal Pharmaceuticals
Funding Amount: $1,000,000
Business Structure: Private company, recently listed due to investor interest

Challenge

A rising player in the animal pharmaceuticals sector faced significant challenges typical of fast-growing companies. Despite their strong market position and recent listing, they needed an ongoing cashflow solution to support their trading activities. The main objective was to secure funding without diluting their capital, ensuring that both their existing investors and new stakeholders retained maximum equity.

Industry Insights

The animal pharmaceuticals sector in Australia is characterised by steady growth and increasing demand for innovative products. Companies in this sector are at the forefront, often requiring flexible financing solutions to maintain their competitive edge. Traditional financing methods can be restrictive, especially for companies experiencing rapid growth and requiring substantial working capital.

Solution

TP24 provided a tailored financial solution through our innovative CreditLine product. This facility leveraged the company’s outstanding receivables, enabling them to unlock funds tied up in unpaid invoices. This approach allowed the company to maintain its growth trajectory without the need for traditional, often rigid, financing options that could compromise equity.

Implementation

The process was swift and efficient, taking just over a week from initial consultation to fund release. Understanding the urgency and unique circumstances, TP24 waived the requirement for director’s guarantees, providing further flexibility and ease of access to the needed funds.

Results

The impact of TP24’s CreditLine on the company was immediate and significant:

• Improved Cash Flow: Enabled smooth management of trading activities without interruptions.
• Maintained Equity: Investors retained their stake without dilution, supporting the company’s long-term growth strategy.
• Quick Turnaround: Funds were made available in just over a week, showcasing the efficiency and responsiveness of TP24’s financing solutions.
• Flexibility: The receivables-based security and waived guarantees offered a tailored solution perfectly suited to the company’s needs.

The success story with TP24’s CreditLine demonstrates the potential of innovative financing solutions in supporting the growth of dynamic industries like animal pharmaceuticals. By offering flexible, and quickly accessible funding, TP24 enables companies to navigate financial challenges and capitalise on growth opportunities, ensuring long-term success and stability.