Sometimes, a company’s financial challenge is not about growing, but about strengthening its position so it can grow under better conditions.
This was the case of an industrial company facing a very specific situation: it needed to optimize its balance sheet before year-end in order to improve its financial profile for the following year and strengthen its access to bank financing.
A clear objective: improve its credit profile without disrupting operations
The company had a solid business model and a significant sales volume, but it had accumulated a substantial level of accounts receivable that directly affected its balance sheet.
The objective was not only to generate liquidity, but also to:
- Reduce the weight of outstanding receivables on the balance sheet.
- Improve its position with financial institutions.
- Prepare the company for future financing transactions.
All of this had to be achieved without disrupting day-to-day operations or creating friction with customers.
The solution: a combination of factoring and structured financing
After analyzing the situation, Kaizen Consulting designed a financial structure tailored to this objective.
First, a non-recourse, non-notification factoring facility was arranged, allowing the company to advance its receivables without involving its customers in the transaction.
This had a twofold impact:
- Immediate liquidity for the company.
- Balance sheet improvement by reducing outstanding receivables.
In addition, leveraging the quality of the debtors included in the transaction, an additional loan was structured using these assets as collateral. This second component was key to maximizing the overall financial impact of the transaction.
A structure designed beyond the short term
Beyond the liquidity obtained, the real value of the transaction lay in its strategic impact:
- Improvement of the company’s financial profile.
- Balance sheet optimization ahead of the new financial year.
- Stronger positioning with banking institutions.
As a result, the company entered the following year from a stronger financial position, with greater negotiating capacity and improved access to new financing facilities.
Kaizen’s role: designing, not just executing
This case reflects a common situation for many companies: financing transactions are not always solely about obtaining liquidity, but about improving the financial structure of the business so it can grow under better conditions.
The Kaizen Consulting team worked on the analysis, design and execution of the transaction, identifying the right financial tools and combining them to maximize the outcome.
Because in many cases, the difference is not simply in obtaining liquidity, but in how the financing is structured.
