Using payment terms to capture market share and drive growth
$16 million
Total credit limits
Shift has extended a total of $16 million in credit limits to Energy Spurt customers.
4.3x
Transaction volume growth
Energy Spurt customers completed 4.3x as many transactions in the six months after they opened a Trade Account compared to the six months before.
33%
of Shift customers new to Energy Spurt
33% of customers using Shift Trade had not purchased from Energy Spurt prior to opening a Trade Account.
The client
Energy Spurt is a leading wholesaler of renewable energy equipment, specialising in the distribution of solar panels, battery storage, inverters and the components required for solar energy installation.
With a national footprint, Energy Spurt is focused on helping solar installers scale their business by connecting them with quality components from leading local and global suppliers.
The challenge
Strong demand across the renewable energy sector presented a significant growth opportunity for installers – and cash flow challenges right across the supply chain.
Installers saw a significant increase in job requests from the public, which required large orders of expensive components (panels, batteries and inverters). This meant working capital that was tied up until installations were complete, customers had paid and government rebates were received.
Energy Spurt was a beneficiary of these increased component orders but it also needed to manage its cash flow carefully. Energy Spurt recognised that supporting installers with extended payment terms was critical to enabling growth, but funding those terms directly would constrain its ability to invest in inventory and supply chain expansion.
The solution
Energy Spurt is paid upfront for all orders
Upfront payment allowed Energy Spurt to maintain strong cash flow and continue investing in inventory and supply chain growth.
Installer customers receive extended payment terms
Installers are able to complete installation and receive payment before they need to repay Shift, increasing project capacity and supporting rising customer demand.
Energy Spurt saw the potential immediately. Following a successful pilot with key customers, Energy Spurt expanded the program across a broad segment of its installer base.
Energy Spurt soon realised that the cost of funding terms through Shift Trade was far outweighed by the increased order volume they were seeing. Added to that are the benefits of outsourcing all credit and payment risk to Shift and an increased ability to secure preferential pricing from manufacturers due to an improved cash flow position.
The results
Energy Spurt now offers 30-day EOM terms to all eligible customers.
These extended payment terms supported the rapid expansion of Energy Spurt’s installer network – translating directly into higher order volumes, new customer acquisition and revenue growth.
Importantly, Energy Spurt has been able to pursue this extraordinary growth with minimal impact on its balance sheet.
A final word
Shift Trade enabled Energy Spurt to capture an outsized share of a rapidly growing market while maintaining strong balance sheet discipline.
Energy Spurt was able to support the growth of its installer customers by providing them with payment terms that encouraged them to order more stock and take on more jobs. This increased existing customer loyalty and word-of-mouth drove significant new customer acquisition.
The result was a sustainable growth loop: greater customer satisfaction, higher order volumes and increased new customer acquisition, culminating in strong revenue growth – all achieved without taking on credit or payment risk.
As a company scaling rapidly, it’s critical that our working capital is allocated to supporting growth rather than being locked up in accounts receivable. Partnering with Shift enables us to do that while still offering our customers extended payment terms.”