Financial Group

Raw Material Producer for Oil & Gas Industry

The company requested an extension of $2 million USD with Expocredit because they reached a commercial agreement with a new debtor

Deal Summary

Product
Factoring
Funding Line Amount
$2 millions USD
Company Type
Oil and petrochemicals
Industry Type
Oil & Gas
Location
United States
This company has led the oil market for 20 years. Since its founding in Texas in 2001, the integrated trading company has positioned itself as a global leader in the commercialization of crude oil condensates, naphtha, distillates, gasoline components, petrochemicals, and thermoplastic resins. The company has a presence in 16 different countries, with notable participation in Switzerland and Singapore.

Despite the ravages caused by the COVID-19 pandemic, the company invoices between $50 million and $100 million per month during its busy season. This transaction level is maintained due to its high offer for different industries, and the fact that it has more than 100 different product lines.

Challenge

By the end of 2020, this company was able to maintain a good sales rhythm and slightly improve its financial results with earnings close to $11 million. However, despite the high turnover, the company has capital needs to cover sales of more than 30 days with clients located in Latin America.

This is a company with great financial results, but one that faces a competitive market with low net profits. For this reason, Expocredit has collaborated with 14 debtors of the company to maintain the cash flow that is needed to fulfill its obligations. This allows the client to remain operational while focusing on reaching agreements that ensure future income rather than immediate ones.

Solution

The company requested an extension of $2 million with Expocredit when they reached a commercial agreement with a new debtor. Through this new agreement, the financing will be acquired by the new enterprise’s debtor, including the charges generated by the factoring service received.

Expocredit understands that difficult market conditions and the client’s time constraints pose challenges to expanding the agreement. However, this is a simple operation that provides a valuable opportunity to a client with an excellent payment performance.