The business – A mid supply chain manufacturer
– Trading for 5 years
– Sales over Â£10m per annum
– Retained proï¬ts of Â£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 ï¬nance on the full value of its debtor ledger and was unable to beneï¬t from this cash payment discount.
UkMG facilitatedÂ Â a Â£250k credit facility to give the customer the ï¬‚exibility of becoming a cash buyer and a 2% discount on supplier orders. This discount offset the cost of using the UkMGfacility â€” increasing proï¬ts and improving supplier relationships.