Type of Finance: Import Finance
Client Industry: Retail Industry
Amount Financed: $5,000,000
Our client had the exclusive rights to sell some of Australia’s most popular toys into Coles, Woolworths, Big W and KMart.
Due to such high demand for their products the company was experiencing difficulty in cash-flowing the expansion.
The toys were sourced from overseas manufacturers in Asia and USA and needed to be paid for before shipping.
Upon arrival in Australia, they then needed to be funded another 60 days until our client was paid for the goods.
To achieve their funding requirements we set about setting up an LC (Letter of Credit) facility. This facility funded the payment of the goods until they landed in Australia. At which once point this facility was paid out via a parallel debtor funding facility which had been established for the client.
Upon payment from their clients Coles, Woolworths, Big W & KMart this debtor funding facility was then payout and the process would start again.
This finance and our input enabled the client to take on an opportunity to sell more stock and make more profit. When previously their growth was being capped by the existing cash flow and they were unable to respond to new bulk orders of their great new toy lines.
Call 02 9453 0300 to discuss.