Fluid Cash Flow for Water Filtration Company

Funding variable cash flow requirements

At a glance

  • Competitive market place
  • Upfront heavy investment needed to win contracts
  • Uneven and challenging cash flow
  • Funding allowed business to regulate cash flow

 

After their bank could no longer support their needs, Watercare needed a funder who could accommodate their variable cash flow requirements

Established in 2003, Watercare designs and manufactures large scale water filtration systems for the power generation industry. Employing 15 staff, they operate as a full turnkey operation; they design bespoke systems, project manage and build the facility. On completion of the plant they commission the software, train staff and ensure fully delivery end to end.

Projects usually involve heavy up front investment, often before the contract has actually been won.

Watercare’s business is influenced by many factors outside their control such as changes in government energy policy, global economic ups and downs and many others. Timing of the commissioning of water filtration systems can be unpredictable which places a lot of strain on their regular cash flow requirements.

Competition in the market place has grown over the past two and a half years and Watercare now find themselves in a much more competitive environment. Watercare’s depth of knowledge and experience in the sector has ensured that they still win the level of business they need but margins are inevitably impacted as price pressures increase. This tends to increase pressure on cashflow.

Previously, the company was supported by a high street bank. However, the complex nature of the business cycle and the “lumpy” nature of its cash flow made it increasingly difficult for the bank to maintain the level of support the business needed.

Watercare was attracted to the very personal and flexible approach Catalyst offered and its willingness to get under the surface of the operation to really understand where the business challenges lay. Catalyst has been able to provide ongoing funding support with a blend of selective invoice finance to release funds from unpaid invoices, and a commercial loan to generate much needed upfront working capital.

Since partnering with Watercare, the funding which Catalyst has provided has allowed the company to focus more clearly on winning new business and to spend less time managing cash flow.

Chris Russell, Managing Director of Watercare said:

“The people at Catalyst are really friendly and helpful. Everyone seems to be happy to go above and beyond what you might expect to make sure we get exactly what we need when we need it. I only have to ask and it’s done! The funding support we’ve received over the years has injected much needed cash into our business and I’m not sure how we would have coped without Catalyst’s help”
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