Working Capital Transformation at Zimmerman Manufacturing

Georgia manufacturer secured $250K working capital loan to optimize inventory and expand production capacity, achieving 35% faster order fulfillment and 28% revenue growth.

Valerie Berkshire, Vice President of Operations of Zimmerman Manufacturing Solutions a manufacturing business in Georgia standing with a grounded, confident posture

Executive Summary

Zimmerman Manufacturing Solutions, a 45-person precision metal fabrication firm in Atlanta, secured a $250,000 working capital loan to address inventory constraints and cash flow challenges. The strategic infusion enabled the company to expand raw material stockpiles, hire additional production staff, and invest in equipment optimization, resulting in significant operational improvements and revenue growth.

The Challenge

Insufficient working capital to maintain optimal inventory levels, causing frequent production delays and missed delivery deadlines
Inability to accept larger orders due to cash constraints and limited production capacity
Seasonal cash flow fluctuations creating strain on operations and supplier relationships during slower quarters

The Solution

Zimmerman Manufacturing needed immediate working capital to bridge the gap between purchasing materials and receiving customer payments. A $250,000 working capital loan provided the necessary liquidity without diluting ownership or taking on long-term debt obligations. The company strategically allocated funds across three key areas: $120,000 for raw materials and component inventory to ensure consistent production flow; $85,000 for hiring two additional CNC operators and one quality control specialist to increase production capacity; and $45,000 for preventive maintenance equipment and software upgrades to optimize existing machinery efficiency. This balanced approach addressed both immediate constraints and long-term operational bottlenecks.

Valerie Berkshire, Vice President of Operations
"This working capital loan was a game-changer. We eliminated production bottlenecks and now fulfill orders 35% faster, which has been critical for winning larger contracts."

The Outcome

Increased production capacity by 35% and reduced order fulfillment time from 18 days to 11.7 days on average
Achieved 28% year-over-year revenue growth ($3.2M to $4.1M) by securing three new large manufacturing contracts
Improved cash conversion cycle by 22 days through optimized inventory management and enhanced supplier payment terms

Conclusion

The $250,000 working capital loan transformed Zimmerman Manufacturing's operational efficiency and financial stability. Within 18 months of securing the financing, the company demonstrated measurable improvements across production metrics, customer satisfaction, and profitability, validating the strategic decision to invest in working capital optimization.

Looking Forward

Valerie Berkshire plans to reinvest 40% of increased profits back into automation technology and expand the facility to accommodate anticipated 15-20% annual growth over the next three years. The company is well-positioned to pursue ISO 9001 certification and expand into aerospace component manufacturing, representing significant long-term growth opportunities.