Financing for Fruit & Vegetables Manufacturer
ExpoCredit assisted with a line of factoring of $2,750,000, enabling the company to improve its working capital and generate more cash flow.
Deal Summary
Product
Factoring
Funding Line Amount
$2,750,000
Company Type
Fruit & Vegetables
Industry Type
Agriculture
Location
Perú
This Peruvian company is mainly engaged in collecting and marketing mango, avocado, and blueberry. As of July 2016, with the acquisition of rural land, it is also dedicated to planting and mango harvest. Its products are marketed locally and mostly abroad, with Europe as its primary market. Likewise, they have a total extension of 123.5 hectares, of which 89.75 have plantings. The company also leases 66.20 hectares of land for mango cultivation. Some of their main export products are avocados, mangoes, and blueberries.
Challenge
With the increasing production costs due to more significant investments in plantations, the company needed to improve its working capital to remain competitive in the international market. As an agricultural manufacturing company, their product (frozen fruits) is invoiced at a fixed price, which translates into a regulated price. Therefore, an injection of capital is necessary to optimize their production.
Solution
The company’s factoring line was for $2,750,000. With this financing support, they intended to meet production costs and obtain more cash flow to increase their investments in fruits and vegetable plantations.
