Financial Group

Peruvian Superfoods

Peruvian superfood grower looking to add to its international export portfolio.

Deal Summary

Product
Factoring Line
Funding Line Amount
$300,000
Company Type
Andean Grain Production
Industry Type
Superfood Export
Location
Peru
Our client specializes in the production and export of high-quality Andean grains, such as quinoa, amaranth, black chia and canihua, all commonly referred to as Peruvian superfoods. Superfoods are nutrient-rich natural foods which have a very positive effect on the body, as they contain a high percentage of vitamins, minerals, enzymes, amino acids and antioxidants. The company is in 8 regions of Peru with 30 technical field managers and are partners with more than 300 farmers and 30 associations of producers. It has very high quality standards for its products and has a team of experts who oversee the entire production process from seed selection to harvest to factory operations to ensure the grain quality meets its clients’ high expectations. In addition to harvesting, it also buys products from farmers and processes and delivers them.

Challenge

The company was formed in 2014 and is in need of cash flow. It has an agreement with one of its debtors stating that the debtor has the right to reject the clients’ goods without pay if they don’t meet its approval upon inspection. While this could seems like somewhat of an issue, it is standard practice within the export business and therefore not cause for major concern. The company maintains a high level of inventory because it processes its product directly.

Solution

Despite being a young company, our client has strong growth potential. It has diversified its client portfolio recently to increase international participation and plans to use factoring to continue to add to its international roster. Therefore, it will have a good balance of both national and international clients in the near future. Revenue, as well as gross, operational and net margins all increased in 2018. The company has no liens or negative media exposure and its risk rating is low. Furthermore, its debtors have exhibited good payment behavior.
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