Factoring line of 300K USD for the company to meet the high demand for bananas in the USA and Europe.
Funding Line Amount
This Ecuadorian enterprise exports bananas to the United States and Europe, guaranteeing an excellent product at competitive prices. Since its foundation in 2018, it stands out for its in-demand product and its commitment to social responsibility, especially its support for small Ecuadorian agricultural producers who market their crops outside Ecuador.
The company handles four product lines: Cavendish, Red Macabu, Orito, and organic bananas. It supervises the entire production process, from planting to the final product, to maintain quality standards. Each of these has international certifications that guarantee the properties of a product sought after by European and American consumers.
The company has not been immune to the COVID-19 pandemic. Since 2019, it has faced challenges driven by increased expenses generated by the closure of ports and the shortage of available containers. Additionally, it has been challenging to obtain cardboard packaging materials. These events have caused an increase in transportation costs. These costs are currently being reduced by the beginning of 2022.
Due to Ecuador’s high taxation on this industry, the company needs to sell as much as possible. Furthermore, the time it takes for its accounts receivable to become effective has increased to an average of 30 days because of the sales volume coupled with the complications described above.
At the pandemic’s beginning, the company’s revenues fell by nearly 15%. However, new contracts signed with multinational companies and increased sales have improved the company’s financial situation. Thanks to this recovery, they sought a factoring specialist to meet the high demand for their products. This growth opportunity led ExpoCredit to approve a $300,000 credit line.
ExpoCredit is proud to work with clients that are benchmark companies in their industry, not only for their sales but also for their social responsibility towards their country and their commitment to improving the quality of life of their producers.
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