Case Studies – Better Business Finance Solutions
Funding your sustainability & growth – balanced, measured, structured
| Problem: |
Insufficient finance to grow the business |
| Objective: |
Determine whether existing finance facilities can be restructured to increase overall debt |
| Background: |
The CEO/Owner was concerned that as the business was growing, the surplus funding was being tied up in increasing working capital as debtors and stock levels rose with the increase in sales. |
| Assessment: |
This is a common problem for many businesses which are in a growth phase. They need additional funding as the surplus cash being generated is insufficient to pay the increasing level of creditors due to lock up of cash in the working capital assets. |
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| Problem: |
Current financier does not understand my business |
| Objective: |
Get better financing arrangements in place |
| Background: |
The CEO/Owner was concerned that the current financier had tied up all his assets, both personal and business, to fund the current business operations. Despite there appearing to be more security for the financier than was required, the financier was reluctant to change the current security arrangements. Furthermore, the interest rate being charged did not seem that cheap given the level of security the lender had to support the loan. |
| Assessment |
In today’s lending environment, this is far too common. It is often the case that the lender has fallen into the trap of not focusing on retaining their current customers with competitive solutions but rather, they are offering all the good things for their next new customer. |
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