Monday, January 17, 2011

GoIndustry DoveBid and the Great Outdoors

The GoIndustry DoveBid Valuations Team donned their outdoor gear recently and embarked on a new adventure - an inventory appraisal of a company specialising in the design, importation and distribution of branded camping and outdoor adventure equipment.
The full inventory appraisal followed the completion of a desktop inventory study in September. This was in response to an enquiry from the prospective lender as to the level of funding availability that could be generated from a stock finance facility. The company had enjoyed several consecutive years of increased sales growth, following the resurgent interest in camping and outdoor activities and the result of the ongoing expansion required urgent additional working capital.

The Valuations Team established base camp at the company’s head office and planned outings to both of their distribution centres. Within the space of five days, the team had fully evaluated the inventory and submitted to the lender a detailed inventory report which included exit scenarios based on both peak and low season stock holdings.
The lender was able to sanction a stock finance facility with the company’s £10m of inventory forming the loan collateral to provide the additional working capital needed. The stock finance facility was to operate alongside the invoice finance facility and would replace the trade finance facility, historically used to fund letter of credit based inventory purchases.

For more information contact go to our web page at GoIndustry DoveBid.