Purchase a $130,000 CNC router.
A joinery business operating for 4 years had identified themselves their outsorced manufacturing expenses were climbing and the directors were not putting their profit margin in their own pockets. They were investigating purchasing a CNC routing machine themselves to bring more production inhouse. Doing so had 4 key benefits.
1. More quality control.
2. Significant cost savings in production time.
3. Increased profit margin straight to the bottom line without increasing end customer price.
4. Business expansion via higher volume of work via production savings.
The directors had approached their bank and a couple of other finance brokers to source funding but none were able to seek an approval. Because of Anthony’s strong relationship with his clients, the directors next approach him in the hope he knew someone that could help. Naturally Anthony said yes and engaged Dave. Because of 2 key things, Dave was able to obtain an approval FIRST TIME. The 2 key things are 1. Directors knew their own business intimately and were able to identify and provide the necessary reports that showed the cost of outsourcing and the effect it was having on the business. And 2. Because Daves background working in senior credit roles signing off on approvals, he knew how to prepare the application for best chance of success. Dave prepared the application demonstrating the cost of outsourcing vs the cost of financing the machine and the cost savings of bringing this in house. A cashflow forecast was prepared, by Dave, and it identified the directors would add over $90,000 to their bottom line (and that’s after the monthly finance payments on the machine).