Sales revenue: $48M (the year before we came)
The situation: The company was among the banks’ good clients, with stable revenue, good customer trust, and a good distribution network. However, when their largest bank changed its customer strategy from working with the top 5 feed companies to the top 3, the company fell off the bank’s priority list and was asked to pay off its debt. The company appointed Augustone to work with that bank to extend the loans, reduce the loan interest rate, pay the principal in installments, and find other sources of funds to repay this bank.
Scopes of work we’ve done:
– Support the company in preparing reports and documents for debt restructuring;
– Support the company in setting up meetings with the bank and supporting the company in negotiating with the bank;
– Support the company in making debt restructuring proposals with the bank as well as reviewing the plans proposed by the bank, thereby choosing the best plan that is suitable for cash flow and production plans that the company can accept;
– Support the company in preparing documents to work with other banks to find capital to repay the company’s current loan to the bank.
– Support in evaluating bank approval documents based on the company’s proposals
– Review selling strategies and propose solutions to improve (the bank told the company that they wanted to withdraw their loans due to high risks in the company’s sales strategy)
- Analyzing current selling strategies to determine the strengths and weaknesses of these strategies and recommending solutions to improve.
- Assessing payment methods
Defining criteria for target customers to minimize non-payment risks
The result: The Bank has approved the company’s proposal to extend the loan for another 6 months, and reduce the loan interest rate by 50%. We have also succeeded in finding new sources of capital to repay the bank.