A national distributor of electronics, educational supplies and accessories that sells to college bookstores and retailers ran into an issue when their main supplier reorganized its credit team and new leadership rescinded long-established and very favorable payment terms. The owner of company was very concerned about the effect these new terms would have on business operations and their ability to maintain compliance with their credit facility.
The owner immediately shared his concerns with Bartlinski & Associates, who saw that the new terms from the primary vendor would have a significant impact on cash flow and the use of the company’s line of credit. The situation required a major change in inventory management. Working with the distributor, the firm focused on increasing the inventory turnover and created a detailed cash flow forecast to show prospective lenders. “We have worked exclusively with AJB for nearly 30 years and I knew they were incredibly familiar with all aspects of our business,” says he owner. “They have prepared many forecasts for me in the past, which have proven to be my most useful management tool. As this project progressed, I knew we were on the right track because the forecast reflected my historical experience and was based on sound judgements and parameters.”
The client found the entire experience to be positive. “There was great collaboration, and their responsiveness exceeded my expectations. All communication and interaction was professional and to the point, with no sugar coating. Their understanding of our business model and industry after working together for so long cannot be underestimated.” The final model included multiple scenarios reflecting inventory levels, timing of peaks and valleys of line of credit usage and the ability to repay the lender within terms, as well as overall profitability data that delivers clear insight into the business. “The end product gives me a roadmap of our financial performance and provides a high level of comfort to our lender, too. AJB’s reputation among the local financial community gives extra credence to our forecasts when lenders are considering our needs. Cash flow forecasts are the most important management tools I have, and I have complete faith and trust in the AJB team to provide me with the most up-to-date and accurate information I need to make better decisions.”
“I consider the work to be of the highest quality. I would recommend AJB to another company and have many times.”