Expanding operations and increasing turnover for a Ladies Fashion House

This niche business manufactures party dresses for the 16-24 age groups. It is a young business only 18months old; and because the business had been started with minimal cash, it was becoming a struggle to expand. The principals knew they could increase turnover if they did not always have to ask for cash on delivery – they therefore sought a factor; however the only factor they found was at prohibitive rates and was therefore also a drain on resources. The business had previously been turned down for loans and the principals were feeling quite despondent.

Objectives:

• Improve cash flow to enable increased turnover
• Invest in additional equipment to increase capacity

What Platinum Did:

It was clear that this business needed a cash injection quickly – however they had no accounts for their trading to date and no business plan. To help this business move forward we did the following:

•  Produced their accounts to determine profitability
•  Developed financial forecasts based upon previous performance whilst taking into account the ability they would have to raise finance
•  Developed a business plan to support their request for additional funds
•  Supported the client in meetings with their bank manager to raise a loan
•  Introduced the client to a new factor who provided the same service at half the cost of their previous factor.

The Results:

• Loan secured and was backed by Small Firms Loan Guarantee Scheme
• Turnover increased by 50% within 3 months (beat the set targets)
• All work funded through “Access to Finance” programme which meant client paid a fraction of normal rates

Clients Comments:

“We have recommended you to all our colleagues – what you have done has made a difference to our lives…”

News

***We are delighted to announce that Platinum has won the 2nd contract for Access to Finance- 2007/08***

***Can we make your accounts and business finance one less thing to worry about?***

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