The business – A mid supply chain manufacturer
– Trading for 5 years
– Sales over £10m per annum
– Retained proﬁts of £500k
Historically, the customer paid its main suppliers after 30 days, but payment upfront would secure a discount.Because of customer concentration, the business was unable to gain ﬁnance on the full value of its debtor ledger and was unable to beneﬁt from this cash payment discount.
UkMG facilitated a £250k credit facility to give the customer the ﬂexibility of becoming a cash buyer and a 2% discount on supplier orders. This discount offset the cost of using the UkMGfacility — increasing proﬁts and improving supplier relationships.