From Failure to Flight

Customer Summary:

Group X houses four companies; each of which provides a critical step in the design, manufacture, installation, and maintenance of HVAC systems. Their largescale manufacturing arm allows the group to provide turnkey solutions to customers of varying sizes, from small residential projects to substantial industrial developments and anything that falls between. The group’s leadership team boast an extensive level of experience, which has allowed the brand to establish itself as an industry leader.

Pre-EBF Reality:

Like many businesses, especially those in the manufacturing and construction industry, a lack of cashflow had brought Group X to a disquieting standstill. Over a two-year period, two of the four businesses under the group had reported losses.

While the remaining two businesses were able to foot the bill left by their sister companies, lengthy payment terms and shifts in their supply chain made it almost impossible for the group to continue operation. The two underperforming businesses were moved to special loans by their bank and were unable to identify traditional finance facilities specific to their overall needs. Group X was referred to EBF by an accounting firm prescribed by their bank.

The EBF Solution:

Upon assessment of the group, EBF determined that the most significant challenge it faced was cashflow bottlenecks. While conducting the analysis of Group X, EBF also identified that the business’ internal financial process required refinement.

“EBF did not only assess our business, but they also took the time to understand it and the situation we were in. They used their experience and the detailed learnings of our business to come up with the right solution specific to us,” says Group X Director, Richard Green.

EBF structured a tailored Invoice Factoring solution for Group X, which addressed the most pressing pain-point that the business faced. 

Implementation:

Like all EBF services, the solution was delivered within a matter of days. Group X leveraged the $5.6M facility to address immediate needs, including increases in production and the commencement of new projects, which were also factored by EBF. The group was also able to settle outstanding debt with suppliers, allowing for a smoother logistical process as their manufacturing arm scaled back to profitability.

The group continued to finance their projects through EBF for another 24 months, after which, they were able to move back to traditional banking.

The Result:

Whilst under the financial stewardship of EBF, the group was able to accelerate their growth exponentially. The group used the increased cashflow and EBF’s guidance to resolve and improve upon their internal processes. By doing so, Group X future-proofed their financial division and benefitted from a level of autonomy that had not been achieved previously.

As the happenings of 2020 brought most businesses to a complete stoppage, the group was able to continue hitting milestones. The group reported their best financial year in 2021, allowing for those impacted by the pandemic to find employment within the growing business.

“The team at EBF helped us in our time of need. They helped to get our [financial] systems in order. Processes that we put in place with the support of EBF helped us come out from the COVID period flying,” says Green.

In Summary:

Express Business Funding take the time to understand a business’ situation on a level that few financial institutions do. Our compassion allows customers to form transparent, judgement free relationships which promote continuous growth and an opportunity for change. The speed with which solutions are provided give customers an immediate reprieve from the stress created by their pre-EBF situation.

Through both our solutions and guidance, EBF customers are given the means to grow – not only financially, but in a way that grants complete autonomy over their financial division.

By working in a way that does this, EBF has helped dozens of businesses create secure, equitable employment opportunities for hard working Canadians.

“If your business is at a point where it needs cash flow, EBF’s solutions will allow you to move forward. They allow you to retain complete control over the processes you can manage, and step in with experience and knowledge on the processes which you need help with. They allowed us the time to get our businesses going again and returned control of our internal workings back to us. I have nothing but good things to say,” concludes Green.