The business – A mid supply chain manufacturer

– Trading for 5 years

– Sales over £10m per annum

– Retained profits of £500k

 

The scenario

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.

The outcome

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.