Improving Cash Flow and Working Capital with Federal Credit Union

In this case study, we will explore how a Federal Credit Union (FCU) partnered with a local manufacturing company, “Valley Tech Manufacturing,” to address their cash flow and working capital challenges. Valley Tech Manufacturing is a mid-sized company in Cincinnati, Ohio, specializing in producing custom industrial machinery. Click here


Valley Tech Manufacturing faced several challenges affecting its cash flow and working capital:

  • Seasonal Fluctuations: The company’s business was highly seasonal, with peak demand during the second and third quarters. During off-peak periods, cash flow was strained.
  • Delayed Payments: Many customers took longer than agreed to pay their invoices, leading to delays in cash inflow.
  • Capital Investments: Valley Tech Manufacturing needed to invest in new equipment and technology to remain competitive but lacked the immediate funds for these capital expenditures.


The FCU recognized the challenges faced by Valley Tech Manufacturing and offered a tailored solution to address their cash flow and working capital needs.

  1. Line of Credit:

The FCU provided a flexible and revolving line of credit that allowed Valley Tech Manufacturing to bridge cash flow gaps during off-peak seasons and meet immediate financial needs.

  1. Accounts Receivable Financing:

To address delayed payments, the FCU offered accounts receivable financing. This allowed Valley Tech Manufacturing to sell their outstanding invoices to the FCU, providing immediate cash while the FCU managed collections.

  1. Equipment Financing:

The FCU offered equipment financing options with competitive terms, enabling Valley Tech Manufacturing to acquire the necessary machinery and technology to improve productivity and competitiveness.

  1. Cash Flow Management Tools:

The FCU provided tools and resources for cash flow management, helping Valley Tech Manufacturing create accurate cash flow forecasts, identify areas of optimization, and streamline financial processes.


The partnership with the FCU resulted in significant improvements for Valley Tech Manufacturing:

  • Stabilized Cash Flow: The line of credit and accounts receivable financing provided consistent cash flow, ensuring that the company could meet its financial obligations even during off-peak seasons.
  • Faster Access to Capital: Equipment financing enabled Valley Tech Manufacturing to make essential capital investments without depleting its working capital.
  • Reduced Financial Stress: With the support of the FCU, Valley Tech Manufacturing experienced reduced financial stress and improved peace of mind, allowing the company to focus on growth and competitiveness.


The partnership between Valley Tech Manufacturing and the Federal Credit Union demonstrates how a tailored financial solution can significantly impact a company’s cash flow and working capital. By providing flexible financing options, cash flow management tools, and support for essential capital investments, the FCU helped Valley Tech Manufacturing overcome financial challenges and achieve sustainable growth and competitiveness. This case study illustrates the potential benefits of leveraging the services and expertise of an FCU to address cash flow and working capital needs in the business world. Get more here

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