The Brief

Lam-Art, a Dundee based laminate fabrication company approached Breadalbane following an introduction from their accountants. Despite having a long term relationship with Clydesdale Bank for over 30 years, the business was advised that the bank no longer wanted to provide funding via their current overdraft. Breadalbane helped identify the available funding options to help alleviate the pressure on cashflow.

The Challenge

Similar to many other small businesses, the pandemic put a strain on Lam-Art, coupled with the challenges faced by subcontractors within the construction industry where all work is completed by a tender process.

Raw materials are bought in advance, the product is manufactured, however the invoice is often not paid until 4 to 6 weeks later – or longer if there has been a delay in the finished product arriving on site. A delay which is outwith the control of the subcontractor.

Solution

Breadalbane’s extensive knowledge of the complexities facing the construction industry led them to recommend a move away from an overdraft to an Invoice Finance facility to help better manage cashflow.

Outcome

“The move away from an overdraft facility has been very successful for Lam-Art. I have confidence and comfort in our cash flow and as a growing business it offers us flexibility.

Once a valuation is submitted to an Invoice Finance provider, 60% is paid to us immediately. This is a cash injection which we wouldn’t have had with an overdraft. The move from the bank to the provider was very straightforward and the facility was set up and ready to use in 3 days. Breadalbane guided us throughout the process.”

What The Client Said

“A huge positive was the locality of Breadalbane. We like to deal with businesses face to face. The move away from an overdraft was a new way of financing our business and the level of guidance and support that we received from Breadalbane was first class.

The move to an Invoice Finance facility has helped improve our cash flow significantly and has eased financial pressure.

The business is in a much stronger position and we’ve got a very healthy order book – as a business owner this is a key priority for me. I’m now more relaxed which means a better night’s sleep.”