Lumber industry
With the assistance of a line of credit of $250,000 USD, ExpoCredit solved one of the narrowest bottlenecks of the company.
Deal Summary
Product
Factoring
Funding Line Amount
$250,000 USD
Company Type
Wooden products manufacturing
Industry Type
Lumber
Location
Paraguay
This case study involves a family-owned Paraguayan company that has operated in the lumber industry since 2006, with extensive experience manufacturing wooden materials.
Holder of the ancient art of industrializing beams, trunks, strips, and boards, this business has successfully entered a market for more specialized products, such as bed structures, electric cable reels and broom stumps, among others.
Nowadays, its known as a reliable and secure supplier in the local and international markets, with exports to MercoSur (Argentina, Uruguay, Brazil, and Bolivia), North America and the Caribbean (United States and Puerto Rico), and Europe (UK, Belgium and, France).
Challenge
In the light of the favorable moment that the lumber industry is currently passing through in Paraguay with a rebound in exports of 45% in 2021, the highest figure in the last 8 years, according to the Paraguayan Timber Federation (FENAPA), the biggest challenge the company faces today is upgrading its industrial plant. With an expected billing increase of at least 30% during 2022, they must gear up to meet their business engagements as well as to remain competitive, in line with the industry trend.
Solution
With the assistance of a line of credit of $250,000 USD, ExpoCredit solved one of the narrowest bottlenecks of the company, allowing the injection of working capital to reduce the cash cycle caused by the extensive payment terms granted to the clients. Access to this funding resulted in a big boost for this company, allowing them to focus on business development instead of worrying about financing its operations.
