Need to obtain equipment from overseas but your local funder won’t finance the import?
Summary Of The Deal:
- The client required a glider to achieve government contracts in Australia.
- Glider to be acquired from Germany.
- After almost a year, the client still could not get import finance.
- AR Cash Flow funded the import via a documentary letter of credit.
- The glider will help the client to acquire more government contracts.
Details of the Transaction:
A finance brokerage company introduced AR Cash Flow to a weather analytics company in Sydney. The finance broker rerouted the lead to AR Cash Flow because of AR Cash Flow’s funding capacity and expertise in quickly structuring and funding activities.
The weather analytics company proposed AR Cash Flow with the possibility of purchasing a glider from a renowned manufacturer in Germany. The said glider will be used for its weather risk management solutions.
Our client’s business had been thriving, but they had a limit on their capacity to get traditional and conventional bank financing. They did not have the capital to acquire the glider and was denied by other financiers at every turn. This was mainly due to credit and performance uncertainty and other complexities involved, as the aircraft was not in Australia. As a result, the glider was held in the manufacturer’s repository for more than nine months.
The client was spending a huge amount on storage costs for the glider held in the manufacturer’s warehouse. This was beating the client’s everyday cash flow. AR Cash Flow stepped in, understood that this was a time-sensitive deal, and immediately presented them with a solution that catered to their needs.
The client, owning the business since 2003, had an exceptional track record with many years of experience in providing weather risk management solutions. The purchase of the glider was secured by the import documentary letter of credit issued by Westpac in Australia and confirmed by Commerzbank AG in Germany.
AR Cash Flow funded 75% of the total value of the glider. We also supervised all the aspects of inspection, logistics, and delivery of the glider. As soon as the glider became part of the business operations, the company will be able to acquire larger projects, which will reshape its bottom line.
Got the same deal?
Please contact Daniel Dunsford on 0432 822 949, (02 8074 2674) or email him at [email protected].