VAST recently collaborated with a London-based IT company that identified a promising opportunity to expand their business by increasing volume with thinner margins. However, this new strategy involved pre-sold orders with a 4-6 week purchase-to-sales cycle, presenting a unique challenge for the company's inventory management and working capital requirements.
The client approached VAST seeking a bespoke financing facility that would enable them to purchase large quantities of IT equipment from the Nordic regions for short periods of time, albeit infrequently. Their goal was to capitalise on the growth opportunity while maintaining a lean and efficient inventory management process.
VAST worked closely with a trusted lender to design a tailored solution that addressed the client's specific needs. The result was a 90-day interest-only revolving credit facility, which allowed the client to pay interest based solely on utilisation.
This innovative financing solution provided the IT company with the flexibility to purchase substantial stock quantities when needed, without incurring unnecessary costs during periods of lower demand. The revolving nature of the facility ensured that the client could continuously access funds as their inventory cycles fluctuated, enabling them to respond swiftly to market demands and capitalise on growth opportunities.
Through this collaborative approach, VAST demonstrated its ability to understand the nuances of the client's business model and tailor a financing solution that directly addressed their unique inventory management challenges. By providing access to flexible working capital, VAST empowered the IT company to execute their growth strategy effectively, while maintaining a lean and efficient operational model.
This case study exemplifies VAST's commitment to delivering bespoke financing solutions that enable businesses to thrive in dynamic industries. By leveraging their expertise and working closely with trusted lenders, VAST ensures that clients have access to the financial tools they need to seize opportunities and drive sustainable growth.