Case Study: Energy Sector

The client is a company that designs, calculates and manufactures customised constructions. This includes static and dynamic structures of steel, stainless steel and aluminium.

They are active in various industries such as Offshore and Crane Building, Industrial and Utility Sectors, Architecture, Infrastructure, Equipment and Attraction Building and Shipbuilding and Yacht Building. Their goal is to keep their customers satisfied by providing high quality and craftsmanship.

The financing needs of this company

The company is a major national and international provider of sustainable and innovative construction solutions.

Over the years, the company has grown rapidly by successfully winning more and larger contracts. These project deliveries are often invoiced in partial instalments.

With these kinds of large projects, there is a peak in the credit requirement because the materials have to be purchased in advance, and additional staff is also hired from qualified partners. All suppliers, naturally, want to be paid on time.

In order to meet this large working capital requirement, they started looking for a solution to finance this large project.

Over the years, the company has grown rapidly by successfully winning more and larger orders.
Within 48 hours the customer received a committed termsheet for a EUR 800,000 factoring facility with Novicap.

“Through the Novicap solution, not only my credit needs are solved, but I also solve the credit needs of my suppliers. That’s added value! Apart from the fact that with Novicap I have solved my working capital needs today, with Novicap I also have the tool to win even more and bigger projects in the future.”

The relation between Novicap and this client

Initially, the company had presented its financing needs to its existing bank. Unfortunately, they quickly came to the conclusion that it was not possible to increase the existing EUR 250,000 facility.

The company had put its financing issue out in its network and soon its credit insurance advisor came up with a tip to contact Novicap.

After explaining the case, the customer had received a committed termsheet for a EUR 800,000 Factoring Facility within 48 hours. The entire turnover could be financed, without any additional securities.

All the debtor had to do was confirm whether the invoice was acceptable and would be paid into Novicap’s bank account. The debtor’s confirmation was given quickly, because the debtor has worked with Novicap before.

Partly because of these payment confirmations, partial invoices of projects and eventual final statements are no problem. This is why Novicap is able to issue high limits in combination with very competitive rates.

Read other case studies

Lees andere cases

Case study: Digital Sector

Our client is a consulting firm and marketing agency specialised in brand positioning in digital environments. The company enables brands and organisations to understand the rules of the game in the digital environment, helping them to integrate them into their business culture and to design objectives, actions and projects with digital DNA that will enable them to reach the consumer. They implement advertising campaigns in searchengines and social networks, permanently optimizing their clients’ investment to maximise the return on investment and thus improve their clients’ profitability.

It’s strategy consists of a significant investment in the search for qualified and specialised employees, which means a high cost for the company and requires having a good cash flow situation. The company is in a phase of important growth but its high investment in qualified employees together with the fact that its clients pay them in an average of 45 days has led to the company enduring cash flow strains at certain times.

The fact that their clients pay them in an average of 45 days has meant that the company has had to put up with cash flow strains.
Our client has opted in the past for banking alternatives in order to solve its working capital financing needs.
Novicap is currently financing most of its clients’ invoices in a fast and efficient way, whether they are private clients or public administration clients.

In the past, the company had opted for banking alternatives in order to solve its working capital financing needs. Their experience with banking is that it did not solve their needs for agility and speed, which led them to seek alternatives.

They found Novicap through social networks. The chemistry on both sides was excellent from the start since Novicap offered them everything that the bank did not: agility, personalised attention, and flexibility. Thanks to Novicap, the company was able to anticipate the collection of their outstanding invoices, thus solving the cash flow strains they were experiencing.

Novicap is currently financing most of its clients’ invoices in a quick and efficient way, whether they are private clients or government clients. By working with Novicap, the client can upload an invoice to the platform and receive the amount in their current account in just 24 hours.

Over the past two years the company has experienced significant growth. They now have 20 employees and are close to their goal as a company since it is not a scalable business. According to the person responsible for the financial department,

“With Novicap we have found a technological partner that allows us to quickly and easily manage our cashflow within a digital platform.”

Even though they are close to their goal, they will continue working with Novicap because once one has used this service, it is more convenient to try to pass on the cost of financing and thus forget about the management of the collection of the invoices, which makes for a very convenient mechanism for the company.