Fueling Success
A Transformational Case in the Transportation Industry
Product
Factoring
Transaction
Increased line to $4,000,000 USD.
Industry
Oil & Gas
Country
Mexico
Company specialized in the marketing of gasoline and diesel, with 100% Mexican capital, established in the state of Durango in 2018. Serving as an associated distributor of major suppliers in the country, such as Halliburton it offers high-quality products at competitive prices. Their standout operation involves direct deliveries from the supplier to the customer, without intermediaries.
Client Overview
Sales Summary
Sales performance (2020) and afterwards (2021 - 2022) after acquiring a factoring line. Values in (USD)
No Data Found
Competing with market prices
Despite the client's exponential growth since its inception in 2018, the company faced challenges in terms of consistent margins and the need to increase its working capital. Despite strong sales growth, gross margins fluctuated due to constant pressure to reduce prices caused by illegal gasoline imports.
"Since the beginning of our operations, we have experienced remarkable growth. However, we have faced obstacles in maintaining consistent margins and the need to increase our working capital. Illegal gasoline imports have exerted constant pressure to reduce prices, impacting our gross margins." - Client's CFO
Invoice advancement without debt
The collaboration with ExpoCredit has been a success story for the client. The company has maintained its exponential growth, with projections indicating that they will achieve revenues of $50.6 million by the end of 2022. Additionally, the client has strengthened its financial position and maintained liquidity and capacity to seize opportunities in the volatile fuel market.
