COVID-19 hit lots of businesses hard – with little respect for track record and longevity. One of the many that suffered was a 50-year-old sheet metal business which was forced to cut staff numbers – from 24 in early 2020 to seven at the height of the pandemic.
“I had to make 16 people redundant, and had to pay redundancy payments – it costs money to employ people, but it costs more for them to leave,” says the businesses’ long-serving owner.
“As a result, our cash flow took a hit.”
Thankfully, creditors had continued to supply materials, to enable work to be carried out.
“They kept us alive,” he admits.
The road to recovery
The business was in need of some short-term help, and unfortunately equity in the 4000sqm property had been reduced due to falling property prices, meaning that avenue to inject cash into the business was quickly closed off.
After seeking options to help bridge the short-term cash flow problems, the experienced owner talked to Bizcap.
Bizcap looks beyond what’s there on face value, and assesses each application on its own merits – and was able to assist the company with the first of three cash flow capital loans, totalling $145,000.
Subsequently, a new contract worth $700,000 was secured, meaning the business can look forward to a positive next chapter of its long history.
“I’m very grateful Bizcap came onboard,” the owner says. “It’s nice to bring the business back around to be a positive operation.
“The problem now, of course, is that I need to find some skilled workers again.”
All things considered, that’s a pretty good problem to have.
If you need some assistance in sourcing capital to further your business, contact us today and we’ll be sure to assist you.