Prior to the economic slowdown, both the automotive and capital equipment sectors experienced unprecedented growth which was incidentally characterised by a general shortage of critical components. Suppliers such as Laser were compelled to commit to pre-production runs schedule. This was done with the intention to shorten lead times on certain key components in anticipation of a continuing stronger demand. However, the sudden global economic slowdown has compromised the group's liquidity and left the company in an overstocked position. Hence, the R3 million term facility is required under the auspices of the companies in distress fund to improve the company's liquidity position.