Here we go. I share my analysis and the significant impact that...

Here we go. I share my analysis and the significant impact that this facility will have on working capital.

To put it briefly you can see below with the facility we can accommodate many more orders with the restriction of working capital on growth lifted.

Before facility:
Month 1: Pay for raw materials (30 days)
Month 2: Production/Invoice customers
Month 3/4: Receipt from customers (30-90 days)
Month 3/4: Pay for more raw materials

After facility:
Month 1: Pay for raw materials (30 days)
Month 2: Production/Invoice customers/Receipt from Debtor facility/Pay for more materials
Month 3/4: Receipt from customers (30-90 days) and repay debtor facility