! ! Please keep in mind that all descriptions below have been translated automatically from the original language
Project description
UAB “Patatos bistro” seeks to secure financial flexibility that would allow it to respond swiftly to growing market demands and emerging development opportunities. Therefore, the company aims to obtain FinoMark credit line intended for working capital financing in the event of a sudden need to invest in business expansion, especially upon winning public tenders to provide catering services for children.
The company’s business specifics – the organization of catering services in educational institutions – mean that business expansion often depends on tenders announced by municipalities or other public institutions. Winning tenders requires quick reaction and preparation:
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Expansion of staff numbers – hiring new cooks, dietitians, and catering management specialists;
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Expansion or upgrade of the production base – acquisition or leasing of additional equipment, inventory, and logistics solutions;
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An increase in working capital requirements until the new contracts generate sufficient revenues.
Since the implementation of such tenders often involves a very short transition period and obligations must be fulfilled from day one (the provision of catering services to children must be ensured without interruption), own funds may not be sufficient, especially if the company is investing in multiple development projects simultaneously.
The FinoMark credit line would be used only as needed to cover short-term operating expenses, and its repayment would be secured from the newly generated revenues from the executed contracts.
Purpose of raising funds
For working capital
