A company’s bank operating line was not large enough and its cash flow was under pressure. Adding to this problem, the bank’s services were too expensive and not meeting the company’s needs.

An ESP strategic plan was created which outlined an executable plan for the company for the next three years — including credible financial projections — in a clear manner that could be communicated to the bank. A proper project management process was instituted to minimize inventory being held in advance and the client’s receivables management process was strengthened with more proactive monitoring and follow-up. Using the PACE Bank Management Program, a Bank presentation binder was created that organized all of the relevant information, documents and financials as well as a term sheet that stated client requirements the bank was expected to support.

This Bank binder was then released to two other banks along with a request for proposal. Both banks submitted proposals and once the strongest candidate was chosen the bank’s operating line was increased with appropriate covenants.

As the cash flow pressure reduced, peace of mind within the company increased. A clear plan was now in place and the company’s financial management, receivables management, project management and inventory management all improved dramatically.