Case Study: The Green Energy Company

The Green Energy Company, is a fast-growing and eager company that is committed to improving the sustainability of the Netherlands. They specialize in making lighting plans and providing LED lighting for both new construction projects and existing construction. With the right equipment a company can save up to 90% on its energy consumption! The Green Energy Company (TGEC) is currently active in the leisure, production and care sector. TGEC meets the highest standards. In recent years, ING Bank (ING) has assisted TGEC in meeting its financing needs.

Increased need for working capital through projects

TGEC is a major supplier of renewable energy solutions for various fitness chains in the Netherlands. Over the years, TGEC has already equipped a large number of these branches with the right LED lighting. Besides regular maintenance, TGEC naturally also has to deal with project deliveries, which are often invoiced in installments.

In a short period of time, a branch, business premises, stores, etc. will have its lightining replaced with the right LED lighting. Especially in large projects a peak in credit needs arises because goods have to be purchased in advance. In order to meet this working capital requirement, the search for a solution to finance these projects was initiated.

  • TGEC has grown rapidly by winning large projects. In order to meet the working capital requirement, the search for a solution to finance these projects was started.
  • Thanks to the good cooperation between ING and NoviCap it was possible to quickly set up a € 150,000 invoice financing facility.
  • TGEC has now won another large project to make a healthcare institution more sustainable. The existing facility continues to grow along with TGEC’s credit needs.

Tijs Uittenbroek, owner TGEC:

We often work project-based, where partial invoicing often occurs, but there are also frequent concentrations in our accounts receivable portfolio. This working method deters many factoring companies. NoviCap deals with this differently and solves this with a payment confirmation from the debtor. I leave the choice up to my customers: pay me quickly or collaborate on the NoviCap solution to get a longer payment term. With the NoviCap solution we feel comfortable. We can grow with new large projects without any problems

ING,  The Green Energy Company en NoviCap 

TGEC has been an ING customer for many years. TGEC first submitted its credit requirements to ING. In order to find an appropriate solution, ING quickly realised that a different way of financing was needed in this case. TGEC needed a financier who could finance projects and who could not avoid concentrations in the accounts receivable portfolio. The link with partner NoviCap was therefore quickly established.

After the introduction of ING, NoviCap submitted an offer to TGEC within one day, for a €150,000 invoice financing facility. The price was based on the creditworthiness of the debtor.  After all, NoviCap has as its working method: the more creditworthy the debtor, the lower the price.

An important condition when financing installments and projects is that the debtor must be prepared to give a payment confirmation to NoviCap. TGEC immediately presented this to its debtor and offered them the choice: a payment term of 14 days or 60 days in combination with a payment confirmation to NoviCap. The debtor chose the NoviCap solution. 

Because of the good cooperation between ING and NoviCap the release of the debtor was arranged within 2 days. This allowed TGEC to quickly start the new project and meet all its payment obligations.

NoviCap as a solution in the acquisition process 

In addition to meeting the credit needs of the projects, NoviCap is also a solution in the acquisition process of TGEC. Potential customers normally get the option to pay within 14 days, but through NoviCap TGEC can also offer longer payment terms. As a result, TGEC is better able to acquire more customers with long payment terms, financing is no longer the limiting factor.

The future of TGEC with NoviCap

In the meantime, TGEC has once again won a major project to make a healthcare institution more sustainable. The existing NoviCap facility can easily be increased to meet the needs of TGEC. In the future the credit line will continue to grow along with TGEC.

Explore other success stories of companies that have been funded with NoviCap

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