As risk advisors, George Peros and Andrew Perros bring their own understanding of what it takes to grow a small business to their client discussions. They know firsthand the challenges of sustaining cash flow through the ups and downs of business operations.
In 2014, these like-minded friends decided to merge their two Authorised Representative (AR) businesses. Working together, Talos Insurance grew quickly. But to take it to the next level, they wanted to acquire a portfolio from a downsizing AR, and use that income to invest in a new staff member. Self-funding this growth strategy was no longer an option.
Talos had a very positive existing relationship with the team at Macquarie Pacific Funding as their exclusive funding provider. “This opened the door to new opportunities with Macquarie Business Banking,” says Andrew. “We knew what we wanted to do and what we were capable of, and the only barrier was our cash flow. Once we freed that up we were off and running, and we haven’t looked back.”
Indeed, they’ve grown their book by 20% organically in the last year, have taken on more staff and will soon move into bigger premises.
“Cash flow is king, and you need all the help you can get,” says George. “Macquarie really understood our business, they have confidence and experience in it. They knew what we wanted to do, and recognised the value of our client book as an asset. Where other banks couldn’t help us, they could.”
The cash flow facility gives Talos stability and certainty, knowing they can move quickly on new opportunities. “You can negotiate differently when you’re in that position,” says George. “Straight away, it gave us peace of mind, so we could focus more on the business and that allowed us to grow it organically.”
This smart approach to cash flow management extends to their own insurance premiums. “We use MPF to fund our own premiums, because we know how much value it brings to our business,” says George.
In turn, this makes it easy for them to discuss premium funding with their own clients. While it makes an obvious difference to start ups with minimal capital, George says he also recently helped a major client who had always paid premiums up front. Having expanded rapidly, their insurance costs had significantly grown – and it simply made smart business sense to fund almost two-thirds to free cash flow.
“Premium funding is critical for so many businesses. We know exactly what they’re going though, we’re sharing the same issues,” says Andrew. They both appreciate the ongoing support from Macquarie. “MPF knows our business well, and always come up with great solutions if we ever have an issue. They’ve always treated us with the same respect as a much larger business.” says George. “We really feel like Macquarie is a partner in our business.”