With the global demand for seafood trending upward, a Miami based seafood wholesaler and distributer, who was originally selling exclusively within the U.S., recognized the growth potential in foreign markets. To capture the opportunities, the company expanded into Europe and Asia. Typically, seafood wholesalers must invest considerable amounts of capital into distribution logistics here at home to ensure product integrity. These efforts and expenses can be magnified when doing business beyond U.S. shores. Plus, there are additional costs when establishing business relationships with new clients across borders.
The new clients in Europe and Asia requested payment terms, which created a longer time lag between when the product was shipped and payments were received. This resulted in a cash strain for the local seafood wholesaler. The seafood company had an existing credit line with a bank, but was in need of additional cash flow to finance the new foreign business and continue growing. The bank referred the seafood company to ExpoCredit based on our supply chain solution.
ExpoCredit was able to solve the cash flow challenge for the seafood company by establishing a supply chain finance line of $600,000. This bridged the cash flow gap created by the payment terms extended to the overseas clients. The seafood company, now an ExpoCredit client, was able to maintain a steady operational cycle.
ExpoCredit kept the seafood distributor afloat and operating in the new markets. ExpoCredit made it possible for the company to move forward even faster by extending payment terms on the finance line to up to 60 days, providing adequate time to complete the cash conversion cycle.
ExpoCredit helped this company increase payment terms to its primary customer.
ExpoCredit is helping this company with the working capital needed to manage seasonality
ExpoCredit helped this company to have the working capital needed to operate according to its demand