We were approached by a predominantly UK based company which sold chemicals used in the manufacture of paints. They were seeking expansion into lucrative new markets in the Far East and required a $5m facility to fulfil newly generated orders.
However, the business’ existing bankers were unwilling to lend further to the business, because of an internally imposed exposure limit.
After an initial meeting, our experienced team quickly identified the best way to structure the transaction was via a Supply Chain Finance facility. We then approached a select number of specialist lenders, who not only provided funding secured by a credit insurance facility but also, given our client’s inexperience with international trade, took control of the management of the supply chain.
The Supply Chain Finance Lender paid for the purchase of the chemicals directly to the supplier in Europe and then set an agreed repayment date to coincide with their payment form their debtor.
Following a successful trade, the client is continuing to expand across the Far East. We have also allocated a dedicated account manager within Oakmead Finance who understands the business and their growth strategy. This makes it quicker and easier to help fund the company’s global expansion.