A Horny Problem - A Crushing Solution (Published May 2006)
Red Rhino Crushers Ltd. was a start-up in 2004 and was our story of the month in Jan 2005. The principal, Colin Campbell, had been seeking new share capital. We reported then how our trade finance was the solution.
Colin is an Engineer Inventor. Red Rhino makes mobile tracked machines for crushing concrete, kerbstones, even Granite. The crushers recycle building waste into aggregate for use on site, saving transport and the tipping costs of landfill. It is an important ecological product with a substantial economic benefit to the user. Colin's designs have already saved over 2 million tons of waste from going to landfill, thus also saving in extraction of aggregates and half a million truck movements.
Their first product, the Mini-crusher, is a substantial machine with an amazing capacity for its size, and proving very reliable. It is assembled from bought-in components, initially from 15 suppliers. The suppliers would not give credit to Red Rhino, a new company, but the UK and Italian suppliers gave us 60-days credit. We secured the Indian supplier of the crusher box by LC.
After about a year, with the product established, Colin attracted an investor. He needed funds for product development, a factory move, and marketing. With the new share capital he could also get some credit from his suppliers. So Red Rhino stopped using us September 2005.
Red Rhino can expand with our economic funding solution . . . and commented "We could not have achieved our success without Fairfax Gerrard"
However, we had done our job and had flexibly expanded their facility up to £450k at its peak. Our Trade Finance, not share capital, had been the right funding solution initially.
But things move on. Re-engineering has reduced the number of main suppliers to 6. The smaller Micro-crusher is launched. The larger Maxi-crusher will be launched in September. Red Rhino are projecting sales of £10m in their third year. The Mini-crusher is already in 12 countries round the world. The strong management team of Red Rhino is rocking the world and crushing the competition!
To assist their further growth they have returned to us to secure sufficient credit from some of their suppliers. Our Supplier Undertaking achieves this. We commit to pay suppliers in 60 days; we recover from proceeds of sales. One major credit reference agency suggests a credit limit on us of £580k, more than is required in this case, or for most of our clients.
The result is that Red Rhino can expand with our economic funding solution. Colin kindly commented "We could not have achieved our success without Fairfax Gerrard". Few clients contribute as much to our world as Red Rhino, although the client stories we plan for the next two months are strong rivals.
We recycle this solution as often as we can aggregate the enquiries!
Written by David Ross Director
Download
the Article 'A Horny Problem - A Crushing Solution' at www.fairfaxgerrard.co.uk/docs/BusMon 0506 A Horny Problem - A Crushing Solution.pdf
<< Back to News Headlines