Partnership with Capitalise helps client achieve significant and timely cashflow benefits
VWG Mechanical Limited is a mechanical engineering contractor and the Dooling family have been long standing clients of Armstrong Watson.
Why they sought to work with us?
- In November 2018, the company were in a period of low operational cashflow
- The company had achieved large growth in the year to 31 May 2018 but this had led to significant projects with larger contractors
- This had led to larger than usual balances held back on retention
- Project finalisations had been delayed and this has led to appreciable lockup of cash
- The company had also taken on new customers during this period who had automatically extended credit terms to those outside the working capital levels operated by the finance team
With large balances on retention and large cashflow due to be received in November 2019, the company needed short term funding to get through this difficult period.
The company’s bankers were not willing to offer any funding due to the company being in the construction sector and this led to Chris Dooling speaking to Armstrong Watson to see if they could assist with the predicament.
“Rhys – you have legendary status within the VWG office today”.
"Many thanks for all your hard work and efforts. To be able to help us out and assist in securing cleared funds within 2 weeks of our first conversation is impressive and is a big help to the business as we work through a serious of slow payments and significant retentions”.
Chris Dooling, Managing Director, VWG Mechanical Limited
What did we do?
- We uploaded the company’s details and funding requirements to the Capitalise Platform in order to ascertain initial interest from financers
- We liaised with the Capitalise team in order to review the funding offers from the Capitalise partners
- We advised on the feasibility of the final funding offer on a commercial level with review by Armstrong Watson’s funding expert, Andy Preece
- Through the Capitalise platform and partnership we aided the flow of cash to the company in a timely manner
How we did it?
We worked successfully with the client and Capitalise by:
- Investing in the relationship and understanding the needs of the business
- delivering the required results and keeping promises made
- We oversaw the project from start to finish to add value to the client and ensure the desired results
- VWG were provided with cleared funds within 2 weeks of the initial conversation with Rhys Davies
- There were significant immediate cashflow benefits for Chris Dooling and his business whilst they experienced this difficulty with working capital
- VWG Mechanical Limited were extremely happy with the results that we had provided
Through the very easy to use Capitalise platform and the Armstrong Watson/Capitalise partnership we were able to provide significant short term funding benefits to VWG Mechanical Limited.