CASE STUDY: NMC helps growing business secure essential overdraft after bank originally says no

Wholesale and Online Business Warehouse

From the outside, this wholesale and online product business seemed to be in great shape: sales were growing rapidly and the products were being well received in the market. But the business actually faced a big challenge – it couldn’t get the bank funding needed to fund the working capital investment required by the sales growth.

The challenge

The business had significantly increased its sales over the previous two years, resulting in a shrinking bank balance and tax arrears. The requirement to purchase and hold more stock became greater. The only problem was, it didn’t have enough working capital to finance these extra purchases.

This is something NMC Finance has seen many times before, growing businesses often face cash flow and financing challenges.

The obvious solution was to take out borrowing. However, the business had fallen behind on its tax payments. When the business applied for a loan, it was declined.

The business reached out to NMC Finance.

The process

Director Nathan Coad sat down with the business owner to understand the challenges this business was facing, particularly in terms of cash flow needs for the coming 12 months and other goals the business had that would be impacted.

Nathan has significant experience with:

  • Matching a client with a lender that’s likely to approve its loan application
  • Structuring the client’s application to maximise its chances of getting approved

NMC helped the business refinance with a supportive lender as a stop-gap measure. The tax debt was taken out by an unsecured lender which alleviated the main bank’s majority concern.

The solution

NMC was able to obtain a business overdraft facility with an alternative lender. The new overdraft offered more flexibility and a more competitive interest rate.

The result

A happy client. The business was not only able to secure the finance it needed to support its ongoing expansion but was also able to address its outstanding tax payments.

Does your business need money to fund its growth or manage its cash flow? NMC Finance specialises in solving business finance problems. Contact Nathan Coad on 0498 766 639 or nathan.coad@nmcfinance.com.au to discuss your unique situation.