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A South African construction materials company with a long history in South Africa grew to become one of the most efficient and competitive businesses in its industry - and expanded its product line to cover much of the market.
But despite high-quality products and a growing portfolio, the company wanted to take its operations to the next level. They chose to do this by removing the shackles imposed by their previous bank and partnering with Nedbank Commercial Banking, which could help them embark on a rapid business growth and acquisition strategy.
Central to the company's growth strategy was access to fast financing and processing -and when they realised their existing bank may have been quick to approve but slow to action payments, they decided to switch to Nedbank Commercial Banking.
"One of the first steps they took to achieve rapid business growth was to convert its operation to a Pty Ltd," says Herman de Kock, Executive Head: Sales & Service Planning & Management at Nedbank Commercial Banking. "This allowed them to obtain a strategic BEE partner, crucial to the company's expansion plans."
Following this, the group acquired other nearby businesses to further expand their operation, reach, and portfolio.
"The Nedbank Commercial Banking team had several engagements with the new client to completely understand their needs and establish a good relationship," says de Kock. "Through this process, not only were we able to understand and address the client's funding and transactional needs, but we were also able to assist by handling the company's full borrowing and transactional banking, which was previously handled by a competitor."
Central to the construction company's expansion was access to a dedicated Nedbank team who kickstarted the processes needed to execute their strategy.
Nedbank Commercial Banking also suggested the company use multiple products in the Nedbank suite to assist them in acquiring companies and managing the growing operation. These included full transactional banking with NetBank Business and Nedbank Debtor management. To manage their expanding fleet, they turned to Nedfleet, and also shifted their bonds to NedBond.
"A revolving credit line for asset-based finance assisted them with their growth strategy. They were able to use our working capital financing to assist with growth and acquisitions," says de Kock. "In addition to the above, the team is busy with the Personal Relationship Banking requirements and Workplace banking solutions."
By implementing this strategy, getting access to finance and business banking solutions, and staying true to the company's original commitment to producing quality products, they maintained a year-on-year growth rate of above 50%, exceeded their expansion objectives and is now the largest supplier of its products in Africa.
"The assistance that we provided in this matter shows just how a bank that believes in your business can offer significant growth and acceleration. And with access to quick finance, a suite of business banking solutions, and a dedicated team to turn to, it's not surprising they've grown to become the biggest supplier in Africa," says de Kock.
If you'd like to explore ways to grow your business, contact Nedbank Commercial Banking. We can assist your business with funding approval and processing and initiate platforms beneficial to your expansion. Talk to your Business Manager or contact us at business@nedbank.co.za for more information and assistance.
This post was sponsored by Nedbank and produced by Adspace Studio.
