01. Commercial Cycle Financing
The company’s suppliers demand down-payment or full-payment upon order placement, whereas the company’s clients typically pay within a 90-day period. This cashflow gap negatively impacts sales growth.
We are able to fund on-the-spot new suppliers’ orders, using existing client receivables (invoices) as collateral. This way the commercial cycle is shortened, resulting in increased sales and improved profitability.
02. Contract Pre-Financing
The client relationship is long-standing, regular, reliable and contractually represented. The company is unable to utilise the existence of this customer relationship to raise additional funding.
We accept in principle that a long-established, time-tested commercial relationship has value even if there are no existing receivables in place to be used as collateral. In such cases, the contractual agreement between the two parties can be used as collateral instead, giving the company the opportunity to access additional funding.
03. Accounts Receivable Financing
Unsecured, cashflow-based lending from a bank is typically not an option, as most banks demand discounted checks to be used as collateral, even for pre-approved revolving loans. Clients issuing checks are becoming rarer and this can hold back a growth in sales, as the company needs to fund its commercial cycle with its own capital.
Existing receivables from B2B customers (i.e. outstanding invoices) could be used as collateral, in order for us to offer working capital funding. This gives the company the means to expand its customer base, by offering credit to select clients who cannot issue checks.
04. Activity Financing
The company faces market and/or company-specific conditions that make its financing quite challenging. For this reason, it might be forced to drop/neglect an attractive business activity (existing or new) which, if adequately financed, would add overall value to the company.
We positively evaluate the existence of a business activity that targets a reliable and financially sound customer base, without losing sight of the company’s overall financial picture.