Expocredit's line of credit will be $300,000 to ensure immediate assistance. With this support, Expocredit expects to recover $2 MM in sales
Funding Line Amount
Raw materials and semi-finished products of seeds, grains and nuts
This Florida company has innovated the American organic food market in the last five years. Although its U.S. operations began in 2016, it is part of a German group with a presence in the market since 1987.
The company specializes in the sale of raw materials and semifinished products including chia seeds, chia oil, Andean grains, allulose and Brazil nuts. The company acts as a trading entity between its main customers in the U.S. and its production facilities in Peru, Mexico, and Germany.
The company’s sales and marketing strategy consists of placing orders for each client, generating raw material based on the specifications of each order, in addition to forwarding to its sister subsidiaries seeking an order directly from the harvest origin.
Although its main liabilities are related to its parent company in the old continent, the company’s objective is to have a minimum amount of inventory in the United States to cover any unexpected demand from customers. Shipping the product from Latin America or Germany can be more costly and complex.
The quality of the product is excellent, but the company faces a complicated environment due to liquidity problems – a consequence of low inventory turnover – and has accounts payable between 90 and 140 days, which is too long to have an optimal cash flow to operate.
The nature of the company’s merchandise also causes delays in delivery as quality disputes are more common with perishable products. Therefore, the company performs random quality checks to avoid cost overruns or unexpected delays.
Expocredit’s line of credit will be $300,000 to ensure immediate assistance. With this support, Expocredit expects to recover $2,000,000 in sales by the end of 2021.
This new alliance is carried out due to the good payment behavior of this customer. In addition, the client became a strategic ally thanks to the service provided, as they had a company that provided the same service until they found out about Expocredit.
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