Even though their business has a high asset value, owning many properties across Denmark, they had some liquidity issues due to an immediate need to settle supplier invoices - including Material suppliers, subcontractors, architects and lawyers.
Their most recent construction project had run over the timeline and they couldn’t get money from their bank.
In the past, their bank had been extremely slow to respond and often reluctant to lend the money.
Plus, the cost of documentation for getting a bank loan made the credit stretch a more enticing offer because we were not only faster, but cheaper too.
We were able to offer a credit stretch that gave them 90 extra days to pay their suppliers. Their suppliers agreed to this because they got 80% of the money upfront. And it cost their suppliers nothing, because our customer offered to pay the whole 4.75% cost.
They’re returning again and again, making five credit stretches in the last month.
Without a credit stretch, they’d have to find 300.000 out of their own pocket to pay their suppliers. This is giving them immense relief that they can use a credit stretch, which takes just a few minutes to apply and receive the money, to ensure their suppliers are happy and their business can continue to grow because their cash flow issues are removed.
They no longer have massive bills looming over their heads and don't have to delay the payment to subcontractors and suppliers they genuinely enjoy working with.
The Credit Stretch is improving the relationship between him and his suppliers.
They are another great example of growing companies that are in need of liquidity. In their case, they have great liquidation, but they can’t always access the money when they need it.
Thanks to Fellow Pay, they now can.