Case Study 1 – Printer in London
- Strong and focused management team
- Remapping business strategy and making trading losses for a couple of years
- Balance sheet healthy although declining through the losses
- Paper supplied by a number of merchants on various terms
- Main customer excluded from the invoice discounting facility so cash always tight
Benefits of joint Paper-Plus deal
- Management were able to continue to remap the business knowing that the major funder and paper supplier were fully supportive
- Able to increase supply from main merchant and leverage buying terms
- Main customer now funded as Eurofactor were confident in overall supply chain so cashflow improved significantly
Case Study 2 – Stationer in South East England
- Very experienced management team
- Significant costs incurred to realign the business in face of changing market-place
- Balance sheet healthy although declining through losses
- Required a significant increase in their credit limit from their paper supplier
- Management accounts bore the brunt of reorganisation costs
Benefits of joint Paper-Plus deal
- Management were able to continue to remap the business knowing that the major funder and paper supplier were fully supportive
- Able to use underlying strength of the balance sheet to maintain supply from main merchant
- Business carried on seamlessly following break-up of buying group
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