Cashflow is about more than stock – it’s about people

December 15, 2016

Greg McAtamney
Maniototo Pty Ltd (sheep shearing contractor)

Millions of sheep are shorn in Australia every year. The hard working shearers tasked with the back-breaking job are usually employed by contractors like Greg McAtamney.

In one year, McAtamney’s team shears over 550,000 sheep.

It’s a seasonal business, with the number of shearers more than doubling in peak times.  McAtamney started his shearing business ten years ago with one small team. Now he has up to fifty staff at any one time.

For McAtamney, his team is everything.

In peak season, McAtamney has to pay up to $80,000 in wages, but the catch is, he often doesn’t see the money his farmer customers until long after the job is done.  “Cashflow can be a struggle, but I really want to pay my staff weekly and do whatever I can to make sure they’re happy,” he says.   “We feed them and buy them shearing gear – that all requires big amounts of money at certain times of the year.”  As his business grew bigger and bigger, McAtamney realised he would need to consider financing options during these busy periods.  He spoke to his accountant about his options. The first that came to mind was taking out a business loan through a bank.  “We didn’t have quite enough security with banks to cover a bigger overdraught. We also considered invoice factoring but they were wanting five percent of the invoice,” McAtamney says.

That’s when he discovered Kikka.

“I did all my research online. Kikka had great reviews and an easy process. I liked the fact that it was a relatively basic process, and so much quicker than my other options.”  To be sure it was the best financing method for his business, McAtamney ran it passed his accountant.  “We spent quite a few nights thinking about it and crunching numbers. Then we both decided taking out a line of credit with Kikka was a great option – a better option – for the business,” he says.  “Retaining staff is my core goal. My teams are what drive my business. Kikka helps me to make sure they’re satisfied at work.”

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