Honduras agricultural goods for export
Agricultural goods trading company improves its flow of operations, remaining competitive in the international market.
Deal Summary
Product
Factoring
Funding Line Amount
$700,000 USD
Company Type
Producers of agricultural goods
Industry Type
Agro
Location
Honduras
Company founded by the strategic association of cooperatives in the western region of Honduras, whose coffee has the best guarantee and quality control systems.
Its principal target market is Europe, exporting to countries such as the Netherlands, Switzerland, and Germany, with average sales of 20 lots of its main products (Coffee, Cocoa, and Pepper) in the high season (October – April). Furthermore, the administration guarantees transparency and the improvement of the quality of life for each of the associated cooperatives.
Challenge
Due to the increase in Honduran coffee exports abroad from October 2021 to July 2022, the company needed to meet the demand by optimizing its production processes. This involved complying with the quality standards agreed upon with regulatory entities such as UTZ, Fair-Trade—USA, and Rainforest Alliance, among others.
As a company with mainly international sales, the payment times agreed upon with its clients and the transit of merchandise tend to be extended. Therefore, an injection of capital is necessary to meet all the market demands, remain competitive in the industry, and strengthen and expand its commercial relationships.
Solution
The company chose ExpoCredit as a strategic partner, receiving a line of credit for USD 700,000. This financing is expected to increase their sales volume, help them meet the industry’s high demand for exports, and enable them to obtain more cash flow to optimize their production processes.
