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.
