This client specialises in the design, implementation and support of business-critical networks.
The clients had a long standing relationship with their bank which included an overdraft of £10,000
The recession had caused a number of this company’s smaller client firms to either go into liquidation or close sites. This had an impact on the client’s profitability.
The clients asked the bank for an expansion to their overdraft facility to help them through this difficult time. Not only was the extension to the overdraft not forthcoming but the bank required the full repayment of the overdraft.
Our clients had also secured a very large contract from an existing customer which would require significant hardware investment in order to allow the contract to be fulfilled. The return for this upfront investment would be gradually repaid from the client’s commitment to a long term contract.
At this point WS & Co were able to arrange working capital for £24,000
Unfortunately the severe weather conditions had an impact on business levels. The client often works in harsh environments and many of the installations they had planned were delayed due to the snow. A further working capital agreement for £10,000 was agreed with the clients As part of the agreement WS & Co have a minor shareholding in the company and as such are personally invested in helping this business to succeed The relationship between the client and WS & Co is an on-going one which provides the client with business consultancy to ensure their business profit is maximised and potential pitfalls are avoided.
These clients have experienced many setbacks recently including the loss of clients caused by the recession and the delay in completed installations (and therefore client payment) caused by adverse weather conditions.
The Working Capital Agreement has enabled them to fulfil their client contracts and continue with their business despite the trials and tribulations they have encountered.