£2.25m Trade Finance and Invoice Finance Facility for a Packaging Supplier
The facility pays 100% of the cost of the goods to the supplier including VAT and duty. Once the goods are delivered it switches to an invoice discounting facility with a 90% prepayment against a single debtor. The facility reduced their funding costs significantly and allowed them to take advantage of a fantastic opportunity to double turnover and increase profits.
The client was with a specialist packaging supplier to KFC. Their facility was expensive and as they had grown it had become restrictive.
We were able to offer a significant reduction in pricing against their existing finance package but the problem was also the structure of the facility.
The business was in talks with another lender who were trying to structure a facility. The offer that they put forwards simply did not work for the business in the long term. It was based on funding stock when in reality the business needed a transactional trade finance facility that paid the supplier.
The business had a fantastic opportunity to increase the supply of packaging to a major global fast food chain. The challenge they faced was sourcing a working capital facility that allowed them to pay their supplier upfront. Our trade finance solution did just that.
The facility that we put in place has allowed our client to take advantage of a great opportunity to supply a global fast food chain. This represents an opportunity to double turnover and significantly increase profits.
With our help the client has achieved:
– a significant cost saving
– a significant increase in cash and liquidity
– a significant reduction in administration
– a future proof facility to help them meet their goals
A Great Example of How We Work
This is a great example of how we work with clients and what we are able to achieve. Our aim is always to help clients meet their objectives. We listen, understand and deliver real solutions, real benefits and real savings.
Contact us today on 0845 251 4040 or complete the contact form above.