Microloan customer story - manufacturing company "Šiluma ir ko"

Private entity ŠILUMA IR KO is producing storage tanks and bulk water heaters. Company is continuously expanding and has competitive adventage by supplying high quality products at attractive prices.
Starting production
Before the establishment of the company M. Balčiūnas worked in the heating system installation and service field. Due to rising prices of gas number of orders to install solid fuel boilers was increasing and storage tanks is one of compulsory parts for it. At that time i.e. in 2005 only imported storage tanks were available on the market and their price was high due to margins of traders, transportation and storage costs. A decision to establish a business and start producing the storage tanks was made. The beginning of operations was very difficult – slowly purchasing needed equipment, renting a modest 50 m2 premises. After a while output began to increase and company started to produce tanks not only for their own needs but also for other installers (company offered price was about 50 % lower than for imported tanks).
Development of the business
In 2010 production volume has increased so much that it was decided to completely abandon installation services and company concentrated only on production. In the beginning growth was financed out of their own savings and using working capital. However, in order to expand faster and efficiently it was not enough. M. Balčiūnas began to look for additional sources of business financing. Bank credit was not available because the company was small and did not have adequate collateral. At that time it was decided to apply for Capitalia microloan for businesses and with its loan increase needed working capital. After receiving the first loan company moved to larger premises 700 m2 indispensable to increase production capacity. "Growing clients list ( today we have about 60 regular customers), and increasing production output (currently producing about 500 units annually) Capitalia was financing us and repeatedly issued needed loans for working capital - and without working capital business cannot grow," said M. Balčiūnas.
For future
This year company started production of thermal insulation products. Started preparing premises, found suppliers of raw materials, developed production technology. This innovation is expected to increase storage tanks production volume. Next year the company plans to launch a steel sheet plasma cutting machines to produce blanks for both their own needs and offer the service to other users. Services should have its demand as currently only few providers of such service is present.
Published by at. 13:18