Husband and wife Greg White and Sarah Davidson began selling souvenirs from Sydney’s Rocks markets in 1987.
However, it wasn’t until 2010, five years after the couple made a tree change to Nulkaba and opened a woodwork and furniture gallery, that they really thought about retailing online. Australian Woodwork’s suppliers are largely made up of small independent artisans and craft workers. For the most part, these sole traders much prefer securing payment in advance rather than waiting for their cut after a retail sale.
This need to accelerate payments can make it hard for Greg and Sarah to manage cash flow when they want to add new products quickly to meet seasonal fluctuations in demand and have them available 24/7.
During the 2014 December gift-giving season, PayPal began offering Working Capital loans to select customers to help them access more inventory. The timing was perfect for Australian Woodwork as a $4,000 Working Capital loan from PayPal meant the business avoided having to take on expensive bank finance.
“We actually didn’t have to fill any forms in, because as they said, we know your business, we know how much you put through PayPal. So they already had an amount we could borrow up to and it went through straight away.”