- Beneficiary Name: Allance Ltd.
- Application Identifier: GINOP-8.3.5-18/B Credit Program for Technological Modernization of Micro, Small and Medium-sized Enterprises
Presentation of Working Capital Financing
Our company has clients from various economic sectors in Hungary, Germany, and France. Unfortunately, due to the COVID pandemic, our order backlog has significantly decreased, and the quantity of orders has fallen below the usual level. We are working to find new customers, but it is doubtful whether this will happen quickly. However, we have not given up our original plans and are opening up to new product groups such as structural elements and conveyor tracks, whose order values can occasionally exceed several tens of millions of forints. The production time can be several months, so the costs of raw materials, auxiliary materials, inventories, and our own labour costs only appear on the revenue side months after the actual expenditure.
The requested financing serves a dual business purpose: to bridge the temporary decline in our order backlog and ensure the smooth liquidity of the company by finding new customers and opening up to new product groups. Secondly, we aim to ensure the pre-financing of raw materials, auxiliary materials, inventories, and labour costs for larger orders under favourable conditions.