{"id":251,"date":"2026-10-16T10:48:55","date_gmt":"2026-10-16T10:48:55","guid":{"rendered":"https:\/\/www.fincobox.com\/blog\/?p=251"},"modified":"2026-10-16T10:51:50","modified_gmt":"2026-10-16T10:51:50","slug":"how-fincobox-helped-an-it-infrastructure-business-manage-working-capital-for-growth","status":"publish","type":"post","link":"https:\/\/www.fincobox.com\/blog\/how-fincobox-helped-an-it-infrastructure-business-manage-working-capital-for-growth\/","title":{"rendered":"How Fincobox Helped an IT Infrastructure Business Manage Working Capital for Growth"},"content":{"rendered":"\n<p>For an IT infrastructure business, winning a project is only one part of the equation.&nbsp;Before a customer payment reaches the bank account, the business may need to purchase networking equipment, switches, security systems and other technology products, while also covering installation, logistics and project execution costs. When several projects run simultaneously, the gap between <strong>supplier payments and customer collections<\/strong> can become a significant working-capital challenge.&nbsp;This was the situation faced by a Dubai-based <strong>IT infrastructure and technology solutions business<\/strong> that approached <a href=\"https:\/\/www.fincobox.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Fincobox<\/strong><\/a> for additional working capital to support its growing project pipeline.&nbsp;The case provides a practical look at how project-based technology businesses can manage cash flow, procurement and growth through the right financing strategy.&nbsp;<\/p>\n\n\n\n<p><strong>The Business Behind the Case<\/strong>&nbsp;<\/p>\n\n\n\n<p>The business operates in the B2B technology sector, providing IT infrastructure products together with installation and implementation services.&nbsp;Its solutions include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Networking infrastructure\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Switching equipment\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Wireless systems\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CCTV and security solutions\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Access-control systems\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Structured cabling\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Installation and implementation services\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Rather than selling individual products in isolation, the company typically delivers <strong>complete project solutions<\/strong>.&nbsp;A single customer project might combine networking equipment, switches, routers, cabling and security products along with installation services. This project-based model means that the company&#8217;s financing needs are closely connected to the timing of its projects.&nbsp;The business serves approximately <strong>40\u201350 customers<\/strong>, including enterprises, schools, logistics companies, agencies and other corporate customers. Individual invoices can range from approximately <strong>AED 100,000 to AED 1 million<\/strong>, depending on the project. Pasted text&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Growth Can Create a Cash-Flow Problem<\/strong>&nbsp;<\/h2>\n\n\n\n<p>A growing order book is usually good news.&nbsp;But for businesses that need to procure products before completing a project, growth can also increase the amount of cash required upfront.The business needs cash during the middle of this cycle, while a significant portion of its revenue arrives later.&nbsp;<\/p>\n\n\n\n<p>In this case, customer payment terms generally ranged from <strong>30 to 60 days<\/strong>. At the same time, suppliers had different payment requirements. Some offered credit, while others required upfront payments or arrangements such as 50\/50 payments. Pasted text This creates a classic working-capital gap. The business may have confirmed work and reliable customers, but still need additional liquidity to pay suppliers and procure equipment before the customer settles the invoice.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Impact of Project-Based Procurement<\/strong>&nbsp;<\/h3>\n\n\n\n<p>One of the most important characteristics of this business was its procurement model.&nbsp;Products were primarily sourced through UAE-based distributors and purchased according to project requirements rather than being held as large amounts of general inventory. The company estimated its current inventory at approximately <strong>AED 300,000<\/strong>, with typical inventory or project holding periods of around <strong>45\u201360 days<\/strong>. Pasted text.&nbsp;This is important because inventory does not necessarily mean excess stock.&nbsp;For project-based businesses, inventory can represent money temporarily tied up in equipment that is waiting to be installed, delivered or handed over.&nbsp;The longer the project cycle, the longer that capital can remain unavailable for the next project.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A Growing Business With a Clear Funding Requirement<\/strong>&nbsp;<\/h3>\n\n\n\n<p>The business had historically generated approximately <strong>AED 7\u20138 million in annual turnover<\/strong>, with previous-year revenue of around AED 8 million.&nbsp;At the time of the assessment, management indicated that current-year revenue had reached approximately <strong>AED 6 million<\/strong>, with an expectation of reaching approximately <strong>AED 10 million<\/strong> for the year. The company was also seeing increased project activity and expected business levels to improve as recently secured projects were executed. Pasted text&nbsp;However, higher activity meant higher funding requirements.&nbsp;Management identified an additional working-capital requirement of approximately <strong>AED 700,000\u20131 million<\/strong>, primarily for:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Supplier and vendor payments\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Procurement of IT products\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Project-related working capital\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Managing multiple projects simultaneously\u00a0<\/li>\n<\/ul>\n\n\n\n<p>The company was also open to beginning with a smaller facility and increasing it later based on business requirements and repayment performance. Pasted text&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>An Important Cost Pressure: Logistics<\/strong>&nbsp;<\/h3>\n\n\n\n<p>The financing requirement was not driven only by project volume.&nbsp;The business was also experiencing increased logistics costs, particularly for products sourced from international markets. Management highlighted a significant increase in container costs for shipments from China to Dubai, with costs reportedly rising from approximately <strong>USD 6,000\u20138,000 historically to around USD 20,000<\/strong>. Higher logistics expenses were putting additional pressure on both margins and working capital. Pasted text.&nbsp;For an importer or technology reseller, this is an important consideration.&nbsp;Even when the selling price of a product remains unchanged, an increase in freight and logistics costs can mean more cash is required before the business receives payment from its customer.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Fincobox Approached the Requirement<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Fincobox looked at the funding requirement in the context of the company&#8217;s entire operating cycle.&nbsp;Instead of treating the request simply as a requirement for AED 700,000\u20131 million, the assessment considered how money moved through the business:&nbsp;<\/p>\n\n\n\n<p><strong>Customer Order<\/strong>&nbsp;<\/p>\n\n\n\n<p>\u2193&nbsp;<\/p>\n\n\n\n<p><strong>Advance \/ Customer Payment<\/strong>&nbsp;<\/p>\n\n\n\n<p>\u2193&nbsp;<\/p>\n\n\n\n<p><strong>Supplier Procurement<\/strong>&nbsp;<\/p>\n\n\n\n<p>\u2193&nbsp;<\/p>\n\n\n\n<p><strong>Equipment &amp; Logistics<\/strong>&nbsp;<\/p>\n\n\n\n<p>\u2193&nbsp;<\/p>\n\n\n\n<p><strong>Installation<\/strong>&nbsp;<\/p>\n\n\n\n<p>\u2193&nbsp;<\/p>\n\n\n\n<p><strong>Project Completion<\/strong>&nbsp;<\/p>\n\n\n\n<p>\u2193&nbsp;<\/p>\n\n\n\n<p><strong>Customer Collection<\/strong>&nbsp;<\/p>\n\n\n\n<p>Understanding this cycle is essential when determining the appropriate financing structure.&nbsp;The objective was to identify financing that could help the business manage the timing difference between <strong>when it needed to pay for a project and when it expected to receive the corresponding customer collections<\/strong>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Existing Financing Does Not Always Solve Future Funding Needs<\/strong>&nbsp;<\/h2>\n\n\n\n<p>The business already had financing facilities that had been used for project cash-flow support.&nbsp;It also had an existing alternative funding arrangement with an available limit of approximately AED 250,000.&nbsp;<\/p>\n\n\n\n<p>However, its working-capital requirement had increased as project activity expanded.&nbsp;This highlights an important point for growing SMEs:&nbsp;<strong>Existing financing capacity should not automatically be assumed to be sufficient for future growth. <\/strong>As revenue increases, procurement volumes can increase as well. A business that once required AED 300,000 of working capital may eventually need significantly more to execute multiple projects simultaneously.&nbsp;The right approach is to periodically reassess the financing requirement against the current project pipeline and cash-conversion cycle.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Working Capital Financing vs. Invoice Financing<\/strong>&nbsp;<\/h2>\n\n\n\n<p>For project-based businesses, it is also useful to distinguish between <strong>working capital financing<\/strong> and <a href=\"https:\/\/www.fincobox.com\/products\/invoice-discounting-services-uae\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>invoice financing<\/strong><\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Working Capital Financing<\/strong>&nbsp;<\/h3>\n\n\n\n<p>Working capital financing can be used to support broader operational requirements, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Supplier payments\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Procurement\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Salaries\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Logistics\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Project execution\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Short-term business expenses\u00a0<\/li>\n<\/ul>\n\n\n\n<p>It can therefore be relevant when the business needs liquidity <strong>before or during project execution<\/strong>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Invoice Financing<\/strong>&nbsp;<\/h3>\n\n\n\n<p>Invoice financing focuses on receivables. Once a business has completed the relevant work and raised an eligible invoice, financing against that receivable may provide access to liquidity before the customer completes its payment cycle, subject to the financing provider&#8217;s assessment and terms.&nbsp;<\/p>\n\n\n\n<p>The two solutions therefore address different points in the cash-flow cycle.&nbsp;For a technology business, working capital may be particularly important during procurement, while invoice financing can potentially become relevant once eligible receivables have been generated.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why This Matters for UAE Technology SMEs<\/strong>&nbsp;<\/h2>\n\n\n\n<p>The case reflects a wider challenge across UAE project-based businesses.&nbsp;Technology companies can have strong customers, established suppliers and healthy revenues but still experience pressure because their cash is tied up between:&nbsp;<\/p>\n\n\n\n<p><strong>Buying \u2192 Delivering \u2192 Invoicing \u2192 Collecting<\/strong>&nbsp;<\/p>\n\n\n\n<p>This can become more pronounced when:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Customer payment terms extend to 60 days\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Suppliers require upfront payments\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Multiple projects overlap\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Equipment has to be imported\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Freight costs increase\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Project sizes become larger\u00a0<\/li>\n<\/ul>\n\n\n\n<p>A business may therefore need more working capital precisely because it is growing.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Businesses Can Learn From This Case<\/strong>&nbsp;<\/h2>\n\n\n\n<p><strong>1. Revenue Growth Needs to Be Supported by Liquidity<\/strong>&nbsp;<\/p>\n\n\n\n<p>Higher sales do not automatically mean higher available cash.&nbsp;Businesses should assess how much capital is required to fulfil those additional sales.&nbsp;<\/p>\n\n\n\n<p><strong>2. Map Your Cash Conversion Cycle<\/strong>&nbsp;<\/p>\n\n\n\n<p>Understanding when money enters and leaves the business can reveal exactly where the funding gap occurs.&nbsp;<\/p>\n\n\n\n<p><strong>3. Consider Supplier Terms Carefully<\/strong>&nbsp;<\/p>\n\n\n\n<p>Two projects with the same revenue can have very different funding requirements if their supplier payment terms differ.&nbsp;<\/p>\n\n\n\n<p><strong>4. Project-Based Inventory Still Uses Capital<\/strong>&nbsp;<\/p>\n\n\n\n<p>Even when inventory is purchased specifically for a confirmed project, that equipment represents cash that cannot be used elsewhere until the project progresses.&nbsp;<\/p>\n\n\n\n<p><strong>5. Financing Should Grow With the Business<\/strong>&nbsp;<\/p>\n\n\n\n<p>As project values and volumes increase, financing requirements may need to be reassessed rather than relying on an old facility size.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Fincobox Brought to the Conversation<\/strong>&nbsp;<\/h2>\n\n\n\n<p>For this IT infrastructure business, the financing discussion was ultimately about more than obtaining a specific amount of money.&nbsp;It was about understanding <strong>how the business generated revenue, when it needed to spend, when customers paid and where additional liquidity could support growth<\/strong>. Fincobox evaluated the company&#8217;s project-driven model, customer payment cycle, supplier commitments, procurement requirements and existing financing arrangements to understand its additional working-capital needs.The business was seeking approximately <strong>AED 700,000\u20131 million<\/strong>, while also remaining open to starting with a smaller facility and scaling it as the financing relationship developed. Pasted text. This approach allows financing discussions to be connected to the actual needs of the business rather than simply focusing on a headline funding amount.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Preparing for Working Capital Financing in the UAE<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Businesses considering financing can make the assessment process more efficient by preparing clear documentation around their operations.&nbsp;<\/p>\n\n\n\n<p>For a project-based technology company, this can include:&nbsp;<\/p>\n\n\n\n<p><strong>Bank statements<\/strong>&nbsp;<\/p>\n\n\n\n<p>To demonstrate actual cash-flow activity.&nbsp;<\/p>\n\n\n\n<p><strong>Purchase orders<\/strong>&nbsp;<\/p>\n\n\n\n<p>To establish confirmed customer requirements.&nbsp;<\/p>\n\n\n\n<p><strong>Invoices<\/strong>&nbsp;<\/p>\n\n\n\n<p>To demonstrate receivables and completed project milestones.&nbsp;<\/p>\n\n\n\n<p><strong>Supplier information<\/strong>&nbsp;<\/p>\n\n\n\n<p>To understand procurement commitments and payment terms.&nbsp;<\/p>\n\n\n\n<p><strong>Project pipeline<\/strong>&nbsp;<\/p>\n\n\n\n<p>To distinguish confirmed projects from potential opportunities.&nbsp;<\/p>\n\n\n\n<p><strong>Financial information<\/strong>&nbsp;<\/p>\n\n\n\n<p>Including revenue, margins, expenses and existing obligations.&nbsp;<\/p>\n\n\n\n<p>In this case, the business used <strong>Zoho<\/strong> for proposals, <a href=\"https:\/\/www.fincobox.com\/products\/purchase-order-liquidity\/\" target=\"_blank\" rel=\"noreferrer noopener\">purchase orders<\/a> and invoicing, and management indicated that relevant project documentation could be provided for underwriting review. Pasted text&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Bigger Lesson: Growth Needs Cash-Flow Planning<\/strong>&nbsp;<\/h2>\n\n\n\n<p>A business does not necessarily need financing because it is struggling. Sometimes, it needs financing because <strong>the business is growing faster than its cash cycle can support<\/strong>.&nbsp;<\/p>\n\n\n\n<p>For a project-based IT infrastructure company, taking on more projects can mean:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More equipment to procure\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More supplier payments\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More logistics costs\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More installation work\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More money tied up in projects\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More receivables waiting to be collected\u00a0<\/li>\n<\/ul>\n\n\n\n<p>If these factors are not planned for, growth itself can create financial pressure. That is why working capital should be treated as part of the growth strategy\u2014not simply as an emergency source of cash.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Fincobox Helps UAE SMEs Manage Growth<\/strong>&nbsp;<\/h2>\n\n\n\n<p>At <a href=\"https:\/\/www.fincobox.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Fincobox<\/strong><\/a>, we work with eligible UAE businesses to understand their financing requirements and explore suitable funding solutions. Depending on the business profile and credit assessment, solutions can include <strong>invoice discounting, <\/strong><a href=\"https:\/\/www.fincobox.com\/products\/revenue-based-liquidity-uae\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>revenue-based financing<\/strong><\/a><strong> and other working-capital structures<\/strong>.&nbsp;<\/p>\n\n\n\n<p>For project-based businesses, the starting point is understanding the cash-flow cycle.&nbsp;<\/p>\n\n\n\n<p>When does the business pay suppliers?&nbsp;<\/p>\n\n\n\n<p>When does it procure inventory?&nbsp;<\/p>\n\n\n\n<p>When does it complete projects?&nbsp;<\/p>\n\n\n\n<p>When does it invoice customers?&nbsp;<\/p>\n\n\n\n<p>And when does the cash actually arrive?&nbsp;<\/p>\n\n\n\n<p>Once those questions are understood, businesses can make more informed decisions about the type and amount of financing they may require.&nbsp;<\/p>\n\n\n\n<p><strong>Conclusion<\/strong>&nbsp;<\/p>\n\n\n\n<p>This case of a Dubai-based IT infrastructure business demonstrates a common challenge faced by growing UAE SMEs: <strong>the need to fund today&#8217;s project costs while waiting for tomorrow&#8217;s customer collections<\/strong>. With annual revenue historically in the AED 7\u20138 million range, growing project activity and an additional working-capital requirement of approximately AED 700,000\u20131 million, the business needed greater liquidity to manage procurement and supplier payments across multiple projects. Pasted text&nbsp;<\/p>\n\n\n\n<p>Fincobox approached the requirement by looking at the complete business cycle from customer orders and procurement to project execution and collections. If your business has confirmed projects, rising procurement requirements or cash tied up in customer receivables, <strong>Fincobox can help you explore financing options designed around your business needs.<\/strong>&nbsp;<\/p>\n\n\n\n<p><strong>Explore your financing options with Fincobox today.<\/strong>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For an IT infrastructure business, winning a project is only one part of the equation.&nbsp;Before a customer payment reaches the bank account, the business may need to purchase networking equipment, switches, security systems and other technology products, while also covering installation, logistics and project execution costs. When several projects run simultaneously, the gap between supplier [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":252,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-251","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/posts\/251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/comments?post=251"}],"version-history":[{"count":4,"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/posts\/251\/revisions"}],"predecessor-version":[{"id":256,"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/posts\/251\/revisions\/256"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/media\/252"}],"wp:attachment":[{"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/media?parent=251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/categories?post=251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fincobox.com\/blog\/wp-json\/wp\/v2\/tags?post=251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}