Raising Working Capital

OBJECTIVE: Prepare a feasible, realistic and robust process for financial projections, reporting and transparency, enabling and securing a $1.5 Million debt facility.

SITUATION: A medium sized family owned commodity brokerage, outgrew their cash availability, and to sustain their growth, required additional funding without loss of equity holdings.

FINDINGS:  Client experienced exponential growth while profits where up, margins where down, due to global macroeconomic factors. 

SOLUTION: As the adage goes – high risk high rewards. The key in this situation was negotiating a win-win for all parties. Traditional sources of funding were risk adverse due to the commodities element and even those financiers that where interested, wanted to ensure that the return on investment was appropriate with having reliable and accurate reporting mechanism in place. New best practices coupled with enhanced internal controls and policy and procedures, gained the confidence that facilitated the process to develop a robust financial accounting system, that allows for projections, across cost centers, GAP analysis, and consolidations on at timely manner.