Production Delays Due to Supplier Payment Terms

A French manufacturing company supplying components to the automotive sector faced an unexpected liquidity gap. A key supplier shortened its payment terms, requiring partial prepayment for raw materials, while the manufacturer’s own clients continued to pay on 60–90-day terms. This created a critical mismatch between outgoing and incoming cashflows.

What PrestaFlex did:

• Analysed the production cycle and cashflow timing
• Structured a CHF 600’000 short-term bridge facility aligned with expected incoming receivables
• Identified lenders specialised in industrial and production financing
• Negotiated a flexible 6-month term with early repayment options
• Secured approval in 4 days

Outcome: The company was able to:

• Purchase raw materials without interrupting production
• Avoid delays that could have jeopardised client contracts
• Improve delivery times and maintain its reputation with major clients
• Repay the bridge loan thoroughly once receivables were collected

Financing was disbursed in 15 business days, ensuring stable operations during a critical period.