Enabling Funding

Challenge

A renowned manufacturer, exporter and wholesale supplier of textile products needed access to funds in order to grow the business as well enter the export market.
Until 2006, the company had focused its efforts only in the domestic markets, wherein it had made operating profits but suffered cash losses. The company decided to move into the export market in order to increase profitability and diversify the customer base. However, the initial phase of such a move required investment in working capital and some equipment. nhbs was engaged to validate the business plan and identify sources of funds.

Approach & Delivery

nhbs reviewed the business plan including developing a range of scenarios from a P&L, Cash Flow and Balance Sheet perspective. nhbs ensured all the assumptions and projections in the business plan were fully tested and vetted using benchmarks and market data.
Once the base business plan was complete, nhbs reviewed the actual funding gap and proposed a few different scenarios on bridging the need. Ultimately, based on nhbs’ recommendation, the promoters opted for additional bank financing. Based upon experience and knowledge, nhbs identified a short list of best banks with expertise in the industry and deal size. nhbs prepared the complete business brief and proposal to the banks.

Results

The client was able to secure financing required through nhbs’ partnership and efforts. The client has not only gained access to the funds and obtained the right structure vital for growth, but also found the right partner bank to grow with in the future.