Financial Group

Consumer Product Displays

Company supplying point of sale displays looking to improve cash flow to continue its growth.

Deal Summary

Product
Factoring Line
Funding Line Amount
$400,000
Company Type
Consumer Products Displays for Point of Sale
Industry Type
Trade Displays
Location
Mexico
Our client, a Chilean company that operates in Mexico, creates point of sale modular solutions that retailers can use to display products in their stores. The company offers a system that allows retailers to create modular displays using scrap materials. This innovative system allows users to generate a variety of display shapes without having to buy separate products. Its parts and pieces can be assembled into different types of displays, which ultimately saves money in display expenses and provides economic and environmental savings. This is the first product improvement the display shelving industry has ever had.

Challenge

The company is relatively small and new, having been founded in 2017. It sells its products to big corporations in Mexico that have long payment terms (60-120 days), so it needs to improve its cash flow to maintain its growth and would therefore benefit greatly from a factoring line. It does not have a long payment history as a young company, so payment assumptions have to be made based on its debtors’ other clients.

Solution

Although the company is young, it has been able to create innovation in a category where there was previously none. Not only can the display materials be made into various configurations by the retailer, but the shelves are also made with recyclable materials. The company operates as a commercial office and has rapidly grown to become one of the biggest businesses in Mexico. It is already showing an improvement in gross margin. It has a broad portfolio of 22 customers, most of whom are large, recognized consumer corporations. While some of its clients have long payment terms, it also has others with shorter payment terms of 30 days. There have been no liens or negative media exposure found and its risk rating is low.
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