Financial Group

Logistics and Supply Chain

This case study involves a Mexican startup company founded by two young entrepreneurs with experience

Deal Summary

Product
Factoring Line
Funding Line Amount
$ 500,000
Company Type
Logistics
Industry Type
Logistics & Supply Chain
Location
Mexico
This case study involves a Mexican startup company founded by two young entrepreneurs with experience in Trucking and Logistics in North America. They envisioned an opportunity to replicate a trucking model frequently used in the US, powered by state-of-the-art technology and tailored to the Mexican market. The technology platform matches corporate customers in Mexico with a multitude of independent truckers that offer a variety of trucking options in Mexico (frozen, refrigerated, dry, 20’, 40’ containers). The platform is akin to a fleet Uber app that also allows customers to track their merchandise up to the point of delivery. This innovative shipping platform has become a favorite for many multinational companies in Mexico, such as P&G, Kimberly Clark and Grupo Modelo.

Challenge

This company is growing rapidly with Fortune 500 customers that tend to pay slower. One of their fastest growing and most profitable customers is also their slowest paying (120 days). This relationship is causing a cash flow strain since the company has to pay its independent truckers immediately.

Solution

This startup company doesn’t have the balance sheet or years in business to obtain traditional bank financing. ExpoCredit, however, recognized the potential of this company – they have a fantastic product, a growing list of blue-chip customers, and they have been growing over 100% YOY for the last 3 years. ExpoCredit’s Factoring Line of Credit allows this company to pay its independent truckers immediately, generating goodwill that helps it expand its supplier base, and continue to grow its business.
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