Kitchenware Production Funding
Summary of the Deal:
• The client is a well-established smart and multi-functional kitchen device provider with more than ten years of trading.
• Their customers include huge Australian department shops and other overseas distributors.
• Due to stellar growth, their manufacturer ceased providing credit and required a payment guarantee before producing future goods.
• AR Cash Flow helped the client by providing pre-manufacturing funding to the supplier.
• The funding will help the client fulfil massive orders and continue to grow.
The Details of the Transaction:
This client was introduced to AR Cash Flow by our broker partner. After ten years of manufacturing premium kitchen devices, their Chinese supplier could not support the massive orders coming in and now demanded upfront payment to source materials for the production.
They now refused to offer the client credit terms when the client had expanded with huge orders coming in from customers.
After a detailed analysis, we quickly understood that this was a sensitive time for the client, and they needed a timely solution. Hence, AR Cash Flow offered them a deal.
The facility was structured as follows:
• The facility was partially backed by the client’s property security.
• The payment to the supplier was secured by a Letter of Credit
• The client has absolute control of the whole shipment process
The solution provided by AR Cash Flow has helped the client to fulfill his customers’ massive orders. Not only has this helped the client to meet his customer’s needs, but has also helped him to free up capital to further his research and development to produce better products and continue to grow.
What greater satisfaction than to help a client achieve their true potential?
Please contact Daniel Dunsford on 0432 822 949, (02 8074 2674) or email him at [email protected].
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