Our customer Base Fire Sprinklers (Base) are a successful SME fire safety company operating nationally. The company has been enjoying rapid growth as a result of their notable reputation coupled with regulatory changes opening new opportunities in the market.
This exceptional growth created new challenges with cash flow management but being based at SBIC, they have access to bespoke business support provided by our Innovation Director, Bernard Page. That’s when their senior team, Chris, Ben and Mark approached Bernard to help with this fundamental business challenge.
Essentially, Base needed to find a way to fuel sustainable growth through an effective and affordable cash flow management strategy.
Being part of the wider Oxford Innovation Space (OI), Bernard was able to draw upon a network of Innovation Directors based across the portfolio. David Smith, an expert in finance and cashflow management based at Mansfield Innovation Centre, joined him to help.
Firstly a comprehensive review of Base’s financial situation and cash flow management was completed. This included:
- A review of the company’s debtor days and aged debtor book which showed that any debts were well managed and not a cause for concern. There was no large stock holding and a ‘just-in-time’ stock management system was working well.
- Supplier relations were good and credit limits seemed appropriate but there was little ‘slack’ in the system to accommodate any late customer payments.
- Their bankers provided an additional credit facility which was useful but did appear expensive. However they did not provide any overdraft facility and it seemed that the business had probably outgrown their current supplier.
- There wasn’t a robust cash flow forecasting system in place to provide visibility of pinch points and flag where issues may arise.
We have a unique relationship with GM Business Growth Hub and frequently broker collaborations with local SME’s to provide additional support and access to finance. So we invited them to review these findings and a team led by Isabelle Farquhar and including Geoff Clowes developed a bespoke, workable strategy to address the challenges Base were experiencing.
As a result they are now in a much improved position – they have strong controls in place, a clear view of their cashflow and the right structures in place to support their ambitions. They have a new banker too who offers a flexible invoice financing solution or an overdraft facility as needed.
Bernard’s support will continue, as does that from GM Business Growth Hub with order books strong and more staff being recruited. Base purposefully selected a spacious office at SBIC to cater for their ambitious growth plans and we are delighted to see their continued success and play a small part in it.
Mark Gordon, one of their Directors told us, “Bernard and the wider OI team have been crucial in helping us manage the financial challenges of rapid growth. With their expert guidance, we improved our cashflow forecasting, secured more flexible financing options, and strengthened our overall financial position. Bernard’s connections GM Business Growth Hub brought additional support, enabling us to focus on scaling the business confidently. Their combined help has given us the financial tools and strategies to sustain our growth while continuing to deliver quality fire safety services”.
All part of the service for customers here at SBIC