When you are manufacturing you are always looking for a better way, a more efficient way, a more cost effective and profitable way to produce your product.
Maybe you need a better manufacturing system
Maybe it’s a newer machine
Maybe its cheaper materials at the same quality
Maybe it’s a combination of a fee of those things?
Recently a Geneva Capital client came to us. They had found a more cost effective source of the materials they used, they were offered a significantly lower buy price, which lowered their cost per unit, if only they would buy in bulk. They had the storage space to be able to store the materials. The result would lift their gross profit by 10%. They lacked the cash flow to buy the quantity of material.
They first approached their Bank for an overdraft. However, due to recent growth and the management of factors around that growth, the ratios and the declining profit, the company did not meet the credit standards and the bank said no. And then the bank said but…….
Their banker then introduced Geneva Capital to help.
By funding the debtors book Geneva Capital could assist with the needed cashflow to purchase the bulk material. By continuing to fund Geneva could assist in the ongoing trading cashflow need, enabling overheads to be met.
By working together with the customer and the Bank, Geneva Capital could fit a flexible solution to the customer and then monitor and work with the advisors to keep the customer in track with the aim of stabilising and returning to bank funding when appropriate. The customer didn’t have to change banks, the bank didn’t lose a customer, and everyone got what they needed to continue.
Geneva Capital work with the Banks to offer help to their clients when the bank sees the valuable customer but are constrained by their internal policies.
At Geneva Capital we offer a working capital facility, it is tailored to your business and flexes with you. We do not restrict to a limit and ask you to reapply when you need more. Best of all our products are confidential so you can fund your business with ease and privacy. If you’d like to see how Geneva can help you grow profitably – call us now or contact us here