Businesses in financial difficulty
The ability to manage working capital is important to all businesses but sometimes, due to circumstances outside its control, a business cannot afford to invest in the systems it needs to monitor and control this at the very time it needs them the most.
One Bluestone customer, a loss-making distributor of healthcare products, developed a product for the US market and experienced delays in getting Environmental Protection Agency approval prior to the launch of the product. This caused cash flow difficulties due to research and development costs being carried without funds from sales of the product. The new management team needed to fund the acquisition of an IT infrastructure required to support a new software system. This new system allowed the company to monitor its stock levels more efficiently by linking to the company's customer relationship management programme thus maintaining stock levels more commensurate with sales.
The ability to make this investment therefore formed a fundamental part of the new management team's turnaround plan and would enable the team to establish a platform for growth.
The customer was unable to raise finance due to its financial position so turned to Bluestone Leasing for assistance.
With careful consideration of the entire situation of the Group of companies, Bluestone Leasing utilised various aspects of the circumstances to present the case positively and convincingly. Not only were the funds needed raised, but also a further credit line for future projects. These were secured at a competitive rate with one of the top finance companies within the UK.
The IT project was completed shortly afterwards and the company has definitely turned the corner towards success. Their product finally received EPA approval and has been launched in the US.
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