How a civil engineering contractor financed stock purchases and became a successful multi-customer business despite COVID…
Situation
A small civil engineering contractor moved from a single customer to serving multiple customers, – just as COVID-19 struck.
Problem
Extra customers and projects meant they needed more cash to purchase more stock to complete various jobs.
Their projects slowed down due to COVID-19 – which increased their costs AND delayed customer payments, severely reducing their liquidity.
Solution
Thanks to advice from Martin Cattach of Finance for Business, they were able to apply for Trade and Debtor finance using The Federal Government’s SME Recovery Loan Scheme, which had capped interest rates and did not require property as security.
Results
Increased business liquidity meant they could secure the stock they needed to deliver customer projects.
They were well-positioned to take advantage of the reopening and are now back at work using the new stock they were able to purchase.
