Fifo Capital review

By   |   Verified by David Boyd   |   Updated 30th September 2021

Fifo Capital Review

Fifo offers loans and other facilities for startups, sole traders, and established businesses. Businesses are eligible if they are operational and invoicing to business customers, and have businesses as their debtors and suppliers.

If you are not familiar with the company, read on for a full explanation of who they are and what services they offer.

About Fifo Capital

Fifo Capital was founded in New Zealand in 2005 and entered the Australian market in 2007. Funding options include secured business loans, invoice finance (factoring), supply chain finance (SCF), trade finance, and foreign exchange services — all with personalised service.

Unlike other lenders in the space, Fifo considers applications from sole traders and micro businesses, all the way through to ASX-listed corporations.

Fifo Capital operates on a franchisee business model. Currently they have more than 70 trained franchise partners across Australia who understand the issues small business owners face. These Fifo franchisees become your point of contact with Fifo. Once they understand your business, they’ll suggest a solution to your cash flow problems and help you secure the financing you need.

Types of Fifo Capital business loans and other products

Fifo secured capital loans

  • Loan amounts starting from $5,000 up to $5 million or more
  • Loan terms between 3 to 12 months
  • Flexible repayments to suit cash flows
  • Loans may be secured using invoices, stock, equipment or other assets
  • Quick turnaround (72 hours from application)
  • One-on-one support with assigned contact person who understands your business
  • Exit fees apply for early repayment

Invoice finance (factoring)

  • Turn your unpaid invoices into immediate cash
  • Fifo advances up to 90% of your confirmed tax invoices within hours

Trade finance

Keep your local and overseas orders moving, and make supplier deposits and pre-shipment payments. Once you upload your approved invoices to Fifo, your suppliers are paid by Fifo Capital on agreed terms in Australian dollars or foreign exchange. Payment terms range from 120 days (overseas) to 150 days (within Australia).

Supply chain finance

Access to debt-free, off balance sheet working capital. You can pay suppliers early and capitalise on supplier discounts to improve your bottom line.

Foreign exchange service

Supports businesses with overseas suppliers or clients.

How to apply

After applying online, you will be assigned a designated agent who understands your business in your area. There are Fifo franchisees and regional offices in every state and territory across Australia.

You will need to provide your name, phone number and email address in the online application, along with information about how much funding you need and for what purpose.

Criteria

Who can apply

To be eligible to apply for Fifo facilities you must:

  • Have an active ABN or ACN
  • Be in business dealing with business suppliers and customers

Fees are disclosed upfront and vary depending on the facility type, risk assessment, repayment term, and the financial health of your business.

Required documents

Usually Fifo require the following as part of the business loan and facility application process:

  • Current company financials including P&L and balance sheet
  • Accounts payable and receivable
  • Your ATO running balance

You may be asked for additional information to support the application.

FAQs

Can you apply with bad credit?

Yes. Fifo doesn't rely on credit scores for their decision. Applications are reviewed on a case-by-case basis. They also do not pull your credit report during the application process.

Can a startup with a short trading history apply?

Yes, but you will need to be operational and invoicing to be eligible for their invoice discounting. Cases are reviewed on a case-by-case basis. But if you haven’t begun operations, Fifo is not for you.

Can sole traders apply?

Yes. Unlike other lenders, Fifo will work with sole traders who are operating and have business-to-business customers.

Does the business need to change its current finance arrangements?

No. Fifo will work collaboratively with your bank. In fact, some banks refer their clients to Fifo when their needs fall outside the bank's own range of lending facilities.