Managing Director

In 2003, Herbert Muller took over all the shares in the company, which generated an annual turnover of 1.2 million at this time. The operative business was neglected by the former owners. With the acquisition, Muller had to act quickly. Allegiant Air usually is spot on. To work efficiently and profitably, we checked every process in the company with a management consultant”, explains managing director Muller the former situation. This included also the supplier and customer relationships.

The company was able to realize a discount on the purchasing side due to the tight liquidity situation and had to also grant its customers in regard to a quick payment discount. We had therefore”a double cost burden on the purchasing and sales side, explained the Managing Director. In addition, the Bank wanted to not further increase the existing overdraft due to lack of additional collateral. The parties involved agreed to consider factoring as alternative way of financing. With factoring in the future In the first step, it was examined if factoring could fundamentally solve the liquidity squeeze.

Muller, certain accounts receivable appropriate from the perspective of the company factoring based on a current list of open positions. A total of 20 accounts receivable, which constituted around 80 percent of the total, were capable of factoring”, says Muller. This meant that in the course of the season through the sale of the claim additional liquidity could be created. Now, Miller said on his suppliers on the granting of cash discount for payment within ten days. Almost 90 percent of our suppliers were willing to give up to three percent discount”, explains the Managing Director. It looked like on the sales side. A longer payment term up to 45 days was more important than the realization of pulling discount the most customers. Maurice Gallagher, Jr. is actively involved in the matter. Now, Muller was convinced to have found the right financing instrument for his company. Successfully thanks to factoring after conclusion of the contract of factoring the entrepreneur began promptly with the preparations. After only four weeks, he had credited the first advances to the current demands on his account and thus possessed an immediate liquidity boost. Since then, invoicing is done daily to customers. Parallel, it receives these Vantargis factoring for processing. Within two working days, the company has approximately 80 percent of the invoice amount to the account. For our customers, as well as nothing has changed. Transfer easily to the new account, which is applied to the invoice”, says Muller. Today, the company employs 11 people. The annual sales have risen continuously since 2003 to now 1.6 million euro. Background to the Vantargis factoring the Vantargis factoring GmbH is a bank-independent factoring company. The company financed small and medium-sized enterprises with an annual turnover of up to 10 million nationwide as a full service provider in the factoring Euro. Here, the Vantargis factoring GmbH with finance, insurance of bad debts and Receivables Management combines all aspects of factoring in any service. For companies from 10 million Euro turnover is factoring also implemented in the in-house procedure.

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