How much Money?

When a Central Florida medical supplier sought financing, but was not sure how much to request, they turned to Evelyn. From a projected income statement and input from the company’s CFO, she created a financial model that revealed the amount and timing of the company’s greatest cash requirement.  The CFO was able to approach the bank with a clear picture of  the company’s financing needs.  The bank in turn granted financing at terms more favorable than expected because it had the added comfort that its client had a thorough understanding of its business and where it was headed.

 

Cash is tight

When a South Florida retailer became highly leveraged as the result of an acquisition, the company needed to transition to more formal monitoring of cash movement to ensure that its cash requirements would never exceed its ability to borrow against available credit.  A financial model had to be developed that would help ensure compliance with bank covenants, and show how much cash would be available to invest in company growth/expansion initiatives.  Daily cash monitoring and reconciliation was established.  From data gathered this way, combined with forecasts provided by the company’s FP&A department, a model was developed.  The model became the driver of cash movement – it ensured that a balance was struck between bank covenants, disbursement requirements, funding of new business initiatives, and the need to react to the shifts in sales, both favorable and unfavorable, which so often occur in the volatile world of retail.  The model is now integral to the decision making process, both tactical and strategic.

 

Many moving parts

When a regional manufacturer made the decision to step up its treasury function, Evelyn worked toward introducing formality by developing a financial model that balanced bank compliance, availability under the company’s credit facility, owner distribution requirements, and the extreme annual cycles of the business.  Through her unique approach, she translated the numbers produced by the model into monthly, weekly, and daily cash projections.  These were used to give accounting staff a guideline with which to ensure that disbursements (and deposits) were in line with plan.   She helped increase the company’s ability to borrow by focusing on maximizing the components of the borrowing base, and accelerating or deferring borrowing base filings based on fluctuations in those components.   She established close monitoring of bank interest charges, which had previously been subject to error.  Bank accounts were documented, and accounts were re-structured to gain operational efficiency.  Several real estate loans were refinanced to take advantage of better interest rates.

 

Where will the money come from

When a manufacturer of vitamin products needed to plan for a large distribution to its shareholders, Evelyn developed a model that assisted the company in deciding how and when to fund the distribution.