Revitalising Manufacturing Success Through Strategic Financing

A thriving manufacturing company with a $90 million annual turnover invested heavily in technology with the goal of gaining a competitive advantage and increasing market share.

Challenge

Unfortunately, they underestimated the capital cost and the business disruption that came with the investment in technology. External supply chain issues meant significant delays with their orders which resulted in business losses as they couldn’t keep up with their customer demands. Production planning was heavily impacted by ongoing supply chain disruptions, so they couldn’t see the light at the end of the tunnel.

Solution

In financial distress, the company approached Earlypay for help with working capital. The tailored financial solution comprised:

Invoice Finance Facility: This assisted daily cash flow management by injecting liquidity supported by sales, with funding growing alongside sales volume.

Trade Finance Facility: Trade Finance removed payment burdens to both domestic and international suppliers for up to 180 days, allowing unhindered focus on production and sales.

Equipment Finance: Capital tied up in unencumbered assets was leveraged to provide access to cash. This initial cash injection went straight into the business to pay down other debt and suppliers.

Outcome

By embracing this comprehensive financing strategy, the company revitalised its operational resilience and regained its competitive footing. Enhanced liquidity empowered flexible responses to market dynamics, while streamlined supply chain operations built efficiency and cost savings. With renewed financial stability, the company went on to achieve sustained growth and profitability, highlighting the transformative power of strategic financing in overcoming adversities and moving businesses towards success.