A tight cash flow situation can mean the difference between accepting a lucrative order or not.
It’s a bit of a chicken an egg situation. The cash comes after the order has been fulfilled, but you haven’t got the funds up front to produce the goods. This is a frustrating scenario that may sound familiar to you.
We were recently contacted by an aircraft parts manufacturer. They needed to purchase a piece of specialist equipment so that they could manufacture an aircraft part for a customer. Their own cashflow situation was rather tight, so they approached the banks for some help.
What next when the Banks say 'No'?
Firstly, they submitted a request for a commercial loan. The Bank said ‘No’. Next, they asked for an extension to their overdraft. Again, the bank said ‘No’. It didn’t help that the equipment they needed to purchase was slightly unusual and would not be entertained by mainstream funders.
It was at this point that the aircraft manufacturer contacted EFT Finance. The first thing we did was to look at their accounts and then contact one of the many funders that we have excellent relationships with.
We arranged for the funder to visit the manufacturing site where they could undertake a valuation of all the assets that were currently unencumbered. This allowed us to put together a refinancing package to the sum of £60K.
The airline manufacturer was delighted. The funding was put in place within 10 working days, which meant they could go back to their customer and accept the order.
This is a prime example of how EFT Finance can keep their customers’ businesses moving and help them to grow.
If cashflow problems are holding your business back and your bank has not been able to help, please give us a call on 0 1403 258934 or email us.