Electromind
MARCEL HESP - CEO
''At Boozt24, the people are entrepreneurs themselves, not bankers. This gives you more confidence from the start that as an entrepreneur with future plans, you will be heard.''
About ElectroMind
ElectroMindlocated in Bladel, is an electrical company specializing in panel building, including distribution and control cabinets. The company sees itself as a technical organization rather than a commercial one. Its philosophy and strength lie in engineering, building, and testing in close collaboration with the customer to relieve them as much as possible. ElectroMind originated from Emotron and has been operating as an independent company in the panel building market for several years.
Many functions must be filled
"Our weakness is that we actually have to grow to fill many functions at the same time; (potential) customers sometimes find us too small and consider us 'unstable', in terms of insufficient continuity." ElectroMind would like to gradually double its staffing, so the company is looking for financing options. Banks are restrained about lending to companies that think more technically than commercially. A loan linked to factoring has been tried and is relatively easy to arrange, but due to the relatively short term of it, there is not really room for the realization of longer-term projects. Hesp: "Loans are temporary solutions, essentially only useful to survive as a company."
Challenge
Approaching a bank for financing as a company after its newfound independence and then being confronted with an economic downturn is doomed from the outset. This was what ElectroMind encountered when this panel builder based in Bladel decided to grow and do even better at what it does best: building high-quality distribution and control cabinets, not only on behalf of the customer but in close collaboration with them as a technology company, not a commercial enterprise.
During its search for alternatives to financing its plans, the company eventually ended up at Boozt24. It soon turned out that this alternative financier for SMEs and ElectroMind were 'on the same wavelength'.
Solution
Solution Finding a credit facility at Boozt24 turned out to be the perfect solution. Essentially, it's a type of factoring that covers the entire portfolio rather than individual invoices. This means that the total amount you invoice is used to determine the credit, rather than a commission per invoice. The process of arranging credit was smooth and efficient, and now the entire invoicing system is run through Boozt24's new, proprietary system. Initially, ElectroMind struggled to keep track of which debtors had paid and which hadn't, which caused the credit amount (linked to the debtor's payment history) to fluctuate. However, this issue was quickly addressed and resolved after being discussed with Boozt24.
The Result
Panel builder ElectroMind finds Boozt24's sympathetic approach to credit granting to be a way to achieve growth.
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