United Kingdom ยท Precision engineering
A profitable engineering group won a contract that doubled its order book, then discovered its overdraft could not fund the labour and material cycle behind it.
The company had traded profitably for eleven years with a modest overdraft that had not been reviewed since it was first agreed. Payment terms with its two largest customers had drifted from forty five to seventy five days.
The new contract required roughly four months of outlay before the first invoice could be raised. The incumbent bank offered a small overdraft uplift subject to a full review that would have taken most of a quarter.
We reframed the request. The business did not need more overdraft, it needed funding that grew with the sales ledger, so we structured a confidential invoice discounting line sized against debtors rather than against historic profit.
Three providers were approached in parallel with a single information pack: aged debtor analysis, contract terms, dilution history and a twelve month cash flow model.
Two offers came back within eleven days. Competitive tension moved the winning margin down and removed a proposed personal guarantee.
A GBP 3m confidential facility completed five weeks after the first conversation, with headroom that scales as the ledger grows.
The overdraft was retained as a small buffer rather than the main funding line, and the contract was delivered without stretching supplier terms.
Details are anonymised. Figures are rounded and identifying information is removed or altered to protect client confidentiality. Past transactions are not a guarantee of future outcomes.
If this looks close to your situation, describe the requirement once and we will structure it and approach the providers whose criteria match.
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