It was necessary to secure the financing of starting material purchases with advance payments for a company supplying energy from renewable sources. Own start-up capital was prepared and at the same time first advance payments were already paid. The company concluded upstream and downstream contracts. Based on the agreed payment terms (advance and interim payments to suppliers, customer payments in arrears), a concern of possible future shortage of money rose. The option of getting foreign sources was considered.
A rapid analysis and cash flow forecast confirmed the need for additional cash in the future. The company adopted a decision to ensure operational financing through a bank loan. The claims should constitute the security.
Based on the presented business model, a business plan was mutually agreed and prepared (including the attachments: detailed projections of future cash flows (cash flow), the balance sheet, income statement). All the necessary documentation for the financing bank was prepared and submitted by the economic adviser. The use of outsourcing has brought relatively simple and quick solution with the possibility of spending the funds on favourable terms.
