Design and manufacturing of wall structures
Annual sales $3,600,000
Facility amount $1,950,000
This company designs and manufactures architectural glass wall structures, selling to markets across North America. Its relatively fast growth put increasing pressure on the company’s cash flow capacity, which was limited by a traditional line of credit issued by a chartered bank. The company had just signed a nine-month contract representing 40% of its reported annual sales when it contacted Camsa.
The bank financing in place was insufficient to accommodate sales growth because equity ratios disqualified it from increased financing. Large quantities of raw material needed to be purchased in order to fulfill the current contract.
Camsa’s Contract Financing was chosen to support the purchase of raw materials by paying the suppliers directly. As finished product was delivered, receivables from progress billing were also financed.
By having its purchases financed as well as its receivables, the company benefited from increased availability of cash during the execution of the contract, enabling it to support the business growth.
The company is able to undertake large contracts that would not be feasible if they depended on only traditional banks for financing.
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This company had designed a unique product for commercial application. The U.S. was their key target market. They were just entering into the commercialization stage after being involved in research and development for a number of years.
Since our inception, Camsa has been actively involved in giving back to our community - it’s something we feel is important and it is an integral part of our core values. Within the Halifax Region, we are proud to have provided support to numerous organizations.
As evidence of our commitment, in 2015 Camsa initiated our very own unique fund raiser to support local charitable initiatives. This fundraiser – Captains and Cooks will continue as an annual event.