Regional Department Store
Large regional department store needing to upgrade it’s EPOS and supporting IT
throughout its operation. The projected programme was to last 12 months.
Due to the multiple draw downs required, other lenders had stated that they wanted the customer to pay
for the equipment first and then be reimbursed at the end of the programme. Alternatively, they were
offered a ‘pre-lease’ facility whereby the lender handled the payment.
CSG compared both routes for the client. The first gave a very negative cash flow and the customer did not wish
to go this route. The second, although on the face of it attractive, would mean
them paying interest on interest and would prove to be very expensive.
CSG offered an open-ended facility of over £300,000 with the customer being able to make
multiple draw downs when they wanted to but with the pricing geared to the overall facility.
This gave them considerable freedom, admin savings and an overall cost benefit.
Approximately one year after the programme ended some modifications and additions were required.
CSG was able to incorporate these into the existing agreement for ease of admin.
Whilst the customers monthly payments did not alter, thereby reducing their IT budget to one simple monthly payment.
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