InvoiceFair (https://invoicefair.com), which runs an innovative receivables trading platform, has supported leading Irish manufacturer Cosmetic Creations in accessing working capital to enable it to significantly ramp up production of hand sanitisers in Ireland.
Cosmetic Creations (https://cosmeticsireland.com/
Initially planning to produce up to 80,000 units a week, the company is now producing over 150,000 units of the Airmedica hand sanitiser a week, with output predicted to increase week on week. The company was also recently awarded a significant public sector order to produce Airmedica for use in clinical environments across Ireland as a result of demand created by the coronavirus outbreak.
The company has taken on 20 more staff, 20 new contractors and redeployed its sites to meet the demand for Airmedica. The key focus for the company was securing funds for raw materials and components upfront and to increase their skilled workforce.
InvoiceFair runs an innovative receivables trading platform to enable SMEs, such as Cosmetic Creations, access fast and flexible working capital funding. The company, founded by Helen Cahill, Peter Brady and Ivan Fox in 2015, has to date funded over €550 million in multi-currency receivables, and is headquartered at NexusUCD, the Industry Partnership Centre at University College Dublin.
Using the InvoiceFair marketplace enabled Cosmetic Creations to leverage a blue-chip Purchase Order (PO) to release working capital to purchase raw materials and fund increased labour costs. This was done using Purchase Order Finance where up to 70% of the value of the Purchase Order was sold to a pool of institutional investors. Production began immediately with the first order due to be delivered within 4 weeks.
Helen Cahill, CEO, InvoiceFair said, “When Aiden Corcoran, CEO, Cosmetic Creations contacted us regarding this opportunity we were immediately able to analyse the contract terms, related production costs, delivery schedules and identify their overall working capital requirements. Talking with the Cosmetic Creations management team we were able to understand their capability, expertise and ability to perform.”
She added, “Once Cosmetic Creations received their PO, the required funding was provided to them within 24 hours. Cosmetic Creations has the knowledge and security of funding to take on additional orders of this size from this or any other large customer.”
Aiden Corcoran, Chief Executive, Cosmetic Creations said, “At Cosmetic Creations, we wanted to play our part in making sure supply lines of vital products such as hand sanitiser stay open. The current unfortunate situation presented by the coronavirus means that solutions have to be developed quickly. Purchase Order Finance gives us enormous scope to fulfill large scale POs inside the critical time schedule.”
Image: Airmedica hand sanitiser. (Source: Cosmetic Creations).