04/03/2009 - 22:00

TSS turns to debtor finance

04/03/2009 - 22:00

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BOORAGOON-BASED recruitment firm Total Staffing Solutions has given a rare public insight into the challenges facing small and medium sized businesses trying to secure finance in the current market.

BOORAGOON-BASED recruitment firm Total Staffing Solutions has given a rare public insight into the challenges facing small and medium sized businesses trying to secure finance in the current market.

Stock exchange-listed TSS announced earlier this month that National Australia Bank had declined to continue providing finance to the company.

The good news for TSS was that it had conditional approval from Scottish Pacific Benchmark to provide a debtor finance facility.

Several days later, TSS was back on the ASX informing shareholders that it had instead secured Bibby Financial Services to provide an unconditional debtor finance facility.

"We didn't proceed with Scottish Pacific Benchmark and went with Bibby because there were just better terms, and they are confidential so I can't comment further," TSS chairman Bryan Gardiner told WA Business News.

Bibby WA manager Gary Green, who recently established the Perth office, said TSS settled with his firm because it could provide flexibility.

"Nevertheless, I went in there with the approach that we can provide TSS with certainty to refinance the facility from the National Australia Bank and that we could turn it around very quickly and provide a more flexible funding option," Mr Green said.

"And TSS was very interested in our proposal, given that they weren't comfortable that Scottish Pacific Benchmark could turn it around in that short timeframe required."

TSS reported a loss of more than $8 million for the half-year ending December 31 2008, and a net cash outflow from operating activities of $906,000.

The company provides domestic and international recruitment, among other services.

Efforts to contact Scottish Pacific Benchmark before WA Business News went to press were unsuccessful.

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