£350k Trade Finance Facility growing to £700k
Food manufacturer – The client bought materials from 3 US based suppliers who all got acquired by one company, they went from having three credit limits with three suppliers to one credit limit with one supplier massively reducing their available supplier credit limits – Reduced from £1000k to £450k
- Funder paid for the materials in the USA directly in local currency, reducing exchange rate risk.
- The customer was able to buy materials in higher volumes to meet demand.
- Customer has additional cashflow facility to buy more volume and get lower prices.
- As the customer works longer with the supplier, they will continue to raise their credit limit.