9 tips for maintaining a healthy cash flow (2/3)

Financing growth with Valérie Goncalves

In 2008, Manuel GONCALVES, our director, a journeyman carpenter, wanted to diversify the activity by focusing more on sustainable development. Thus, the company has completed its know-how with activities such as the installation of photovoltaic panels on roofs, clean security systems, asbestos removal, connection to the electricity grid...

In our business and in order to carry out our services, we are convinced that there is strength in numbers, which is why we surround ourselves with competent, qualified and trustworthy teams with whom we have been working for many years.

While our teams are committed to honouring our customers' orders, it is important to know that collecting our invoices also requires a great deal of involvement. Local authorities pay between 45 and 60 days after receiving the work, which requires a minimum of 110 days of cash flow between the purchase of materials, the completion of the work and payment to the end customer.

Factoring is a short-term financing technique that has enabled us to continue our development. We have used it traditionally for local authority markets and have also integrated a Reverse Factoring programme with one of our clients.

These 2 financial systems now enable GMV Industrie to meet its cash flow needs (additional staff, training, vehicles, equipment, etc.), all of which have an impact on the company's working capital.

Cash flow is now fully in line with the company's needs. So much so that 5 new technicians were hired in July 2018 bringing GMV Industrie's workforce to 30 employees.

Valérie Goncalves' advice for a healthy cash flow :

1. Don't be afraid to take the plunge
2. Getting closer to experts by field of expertise
3. Adopting factoring

more information  :

• Valérie Goncalves is co-director of GMV Industrie. The company was founded in 1993. Specialising in carpentry, roofing and zinc work, the company evolved in 2008 under the name SARL GMV Industrie. Today, it is organised into two major divisions: GMV Construction and GMV Energie, and has 30 employees, all of whom work for local authorities, companies, hospitals, etc.
• Please do not hesitate to contact Valérie GONCALVES if you would like more information about her activity :
  http://www.gmvindustrie.com/

DISCOVER THE 6 OTHER TIPS FOR A HEALTHY CASH FLOW :

9 TIPS FOR MAINTAINING A HEALTHY CASH FLOW (1/3)
9 TIPS FOR MAINTAINING A HEALTHY CASH FLOW (3/3)

These testimonials are taken from the white paper "Terms of payment, cash flow... The real life of construction companies".