We wanted to be sure that we could take in new orders without hitting the bank´s credit limit
The company Automatic Syd is one of the leading manufacturers in Denmark of electric switchboards and robot solutions for the industry. The company delivers customised solutions both as a direct supplier and as a sub-supplier to other companies´ projects.
In the spring of 2011 Automatic Syd won a major order as a sub-supplier to a customer who builts power plants worldwide. The order involved the delivery of a complete system of electric switchboards for a foreign power plant.
Automatic Syd would receive an advance payment of approximately DKK 2.5 million from the customer against a bank guarantee covering the amount.
Automatic Syd decided to find out if they could obtain some additional security for the bank guarantee. ”We were facing an order boom after the financial crisis and wanted to be sure that we could take in new orders without hitting the bank´s credit limit,” says René K. Johannsen, Managing Director of Automatic Syd.