Client Challenge
The client is a small but innovative company that operates in the mobile temperature control delivery market place. They first approached us to help them write a funding business plan so that they could approach their existing bank to increase their loan facilities to finance the recruitment of additional mobile engineers and office staff to meet the demand in this newly regulated growing industry. As we are registered with the Growth Accelerator Scheme we were able to undertake this at a greatly reduced cost to the client.
The challenge was that, in essence, this was a one-man business trying to grow in this expanding market. The MD had to do the planning, the management, the day-to-day organisation and the fulfilment of orders and delivery on a nationwide basis.
A draft business plan was already in existence and the project was to turn this into a winning funding business plan and to decide how much capital was required and then to recommend and approach suitable funders to provide the working growth capital.
The Approach
A business plan rectification process was undertaken, which was completed within a few weeks, despite the MD working extended hours on running the business. It was then decided that their existing bank would be the best people to approach for this commercial term loan. A £50,000 EFG loan was successfully negotiated.
At the same time another urgent requirement materialised when a major government department, operating in the UK and internationally, placed their first order after having undertaking a successful trial. An additional £65,000 was required to be able to afford to fulfil this important first order. It was decided that Trade Finance was the route to go as the client had a firm order from a blue chip client. We were reluctant to put all our financial requirement into the same basket and it was likely that the Bank would be reluctant to grant additional funding so soon after a new loan was provided.
We undertook our normal competitive process, approached 5 alternative Trade Finance and providers and within 10 days a £65,000 flexible trade finance facility was in place.
Outcome
The client was able to employ and equip two new mobile engineers and an office assistant and to fulfil an urgent order for what will most likely become one of their most important clients in the future.
