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Precision Parts

With NoviCap, PREPARTS is able to keep its main clients whilst having sufficient liquidity to take on new projects

The company

Jose Soriano, Director of PREPARTS Precission Parts, is an entrepreneur who started his own business in 2009, leveraging his contacts and taking advantage of his experience in the sector. PREPARTS is a family business with ten employees. Most of the demand comes from the automotive sector due to the large consumption of parts. The domestic market for production of machined hardware is highly concentrated and, for this reason, PREPARTS has started to increase exports to foreign customers. Today 90% of PREPARTS production leaves the country.

the financing need

Jose was forced to seek short-term financing to ensure the sustainability of the business. At the end of the month he needed to buy the materials to process incoming orders, but without liquidity, ​​it was impossible to maintain the pace of operations: "I had to turn down some new clients due to lack of liquidity." According to Joan, "the biggest frustration when seeking financing via banks is the lack of flexibility and personalised service." For PREPARTS, the payment terms imposed by their main client were unsustainable. "If we wanted to continue working with our client we had to find a way to shorten the payment terms."

THE SOLUTION

NoviCap focuses the risk analysis on the company's clients, rather than only on the company. In this way they are able to provide financing solutions to more companies. "By financing my invoices with NoviCap, I am able to keep my clients and have sufficient liquidity to venture into new projects." Joan was directed to NoviCap by one of his clients who had already used similar services, which are very popular in other countries such as the UK and US. "For the client it is important that the providers have a good cash flow so that their orders can be processed on time. Thanks to NoviCap, we have found a win-win solution."

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