“I value the independent and professional support provided by GFL and would definitely recommend them.”  Andreas Bruthier, MHB

MHB GmbH is an owner-managed metal trading company which has been in operation since 2008. The business is prone to volatile revenue streams due to continually changing raw material prices which result in fluctuations in turnover.  In addition, the entire industry is going through a process of change as is the customer sector. 

MHB’s portfolio contains a lot of raw materials which are then used in the aluminium and steel production.  The company mainly supplies domestic trade customers who are all personally known to Managing Director, Andreas Bruthier.  Direct and individual contact like this is an important factor for the business.

Interconnected: Credit insurance and factoring

Margins in this industry are not particularly high. Therefore, debt coverage is an important issue for Andreas Bruthier.  Factoring, as a part of asset based financing, can also be a useful tool as account receivables in current assets are the dominant item in the balance sheet.

MHB and GFL have been successfully working together for ten years.  At that time, GFL’s experts carried out a credit insurance tender for MHB which highlighted the differences in terms and conditions. The first joint policy began in September 2010.  Since then, GFL has serviced the contract and consistently been able to implement improvements for the company.

A year later, the GFL specialists raised the topic of ‘Factoring’ with MHB’s customers as additional working capital was required. As well as this, it had already become predictable that payment terms and as a result Days sales outstanding (DSO) would be extended. Up until now, MHB has continued to use this financing although in the interim there has been a change of provider. 

Andreas Bruthier remains very satisfied with the working relationship: “I value the independent and professional support provided by GFL. Although the advisers work closely with credit insurers and financers, they are not tied to any providers. As the client, we always have the feeling that they are exclusively advising us based only on our interests.”