Name: Zenith International
Based: Bath
Website: www.zenithinternational.com
Cash positive projects don’t mean doing projects that make money (although this is obviously critical too). It means changing our project billing terms and conditions so as to ensure all projects are cash positive. This has meant that as of 2012 almost all projects are billed ahead of work being done. This required a careful transition period with our established customers as well as training with the personnel who were quoting for work.
Previously, projects were often billed in arrears which led to the company constantly relying on an overdraft. Since the middle of 2013, we have been completely free of an overdraft facility. The change has not only saved us thousands of pounds in bank charges but has also enabled us to maintain or only slightly increase our charges over the past two years. Clients understood that by working co-operatively on payment terms the benefit was shared – we got to minimise our risk and they got a better price.
Our positive cash position has also meant that we have been able to pay all our suppliers in 30 days or under. It has also resulted in us being able to invest more easily in things like new computer equipment, where previously this would have been heavily dependent on the projected overdraft level.
We are now in a position where we have enough reserve to be able to make even bigger investments in the future.
Kathryn Amey is the finance director at Zenith International.
