January 30, 2015
It is rare that Pulse is invited to quote on a deal if the world surrounding the client is a bed of roses. Cast your mind back two years. An introducer presented us with a deal, £1.5 million funds out, partly contractual, HMRC arrears built up as a result of restricted financing in part due to some operational issues. Was this a Construction Pulse deal or a Turnaround deal – probably a bit of both, but we were comfortable with the business and management, we just needed to work closely with the client to ensure we were reading from the same page.
Consequently, the operation became very smooth, we understood each other, and sufficient funding was generated from the business that it was able to grow, win new business, repay its HMRC arrears and operate as a very good business.
Four months after making the change, for one reason or another, the bank held back on the funding, growth was stifled, new contracts could not be funded, HMRC arrears again reared their head and the directors found that they needed to change financiers.
Fortunately, we had maintained a good dialogue and we were delighted to welcome them back and in January 2015 we signed a 24 month deal, at the client’s choice, to ensure continuity and to be there when the business needed funding for growth and maintaining its working capital. We were a little more expensive, but not a lot more, but what we offered was value for money and a facility which matched the operational aspirations of the company. By the way, we completed the deal in a week, because we know that time is money!
The client commented “whilst you may be a little more expensive, we know what we get from you, and you deliver what you say. This has a greater value than money and allows me to sleep at night.”
So the simple moral is do not buy on price, but the service which best suits the client. We build a proper relationship with our introducers, so they know who to contact when the circumstances are right.