We are always looking for a different way to report what we do, in this case it may be apt to quote Phil Collins, this case was ‘Against All Odds’ but ‘…A Chance we Had To Take..’ which led the client to say ‘..So Take a Look at Me Now..’
If you can stand any more, then please read on as this case will undoubtedly ring bells with many other business operators out there.
Operating in the high access and specialist clean sector our client was in a period of transition, having lost several major UK insurance contracts and faced with the need to diversify.
The company sought finance from their bankers to allow them to increase their marketing, purchase new equipment and diversify into new markets. This was in direct response to the loss of the key insurance contracts.
The existing company bankers declined to provide any further lending, this was due to concerns over a fall in trading, doubts over the feasibility of diversifying and that the company had been fully utilising its facilities and the bank was concerned about this ongoing pressure.
Lime were approached as a direct result of the company having been declined borrowing.
Our first task was to obtain authorisation to speak with the bank on the company’s behalf. We then fully explored the bank’s issues, understood their position and reported this back to the company.
Following this we undertook a more detailed review of the business and started to put actions in place to address the bank’s concerns. We also explored other options for interim finance.
Over a period of three months we worked with the company to implement various changes to the business, reduce costs elsewhere and involved their bank in the process.
A business plan was written which specified clear goals and timescales, including KPIs on which to measure progress.
As a result the company traded through a difficult period and started to win new work in the areas targeted, we maintained a relationship with the company bankers which further freed the directors to concentrate on growing the business.
At the six month mark we put a revised proposal into the bank, at which stage we could clearly demonstrate that the previous weaknesses had been addressed, a firm plan was in place and the directors had proven their ability to diversify.
The business has continued to succeed and we continue to work with this client, meeting them on a monthly basis to review progress and guide where necessary.
One of the key points in this case was that the company approached their bank for finance when they needed it, rather than ahead of when they needed it.
Had we been involved at an earlier date it is likely the finance could have been secured at the first request.
Lack of planning for finance remains one of the major issues we see and ultimately is the main underlying reason why finance can be difficult to secure.
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