Financial Group

Raw Material Producer for Oil & Gas Industry

ExpoCredit "pumps up" growth of Oil & Gas company

Deal Summary

Product
Factoring Line
Funding Line Amount
$500,000
Company Type
Mining and Processing of Raw Materials
Industry Type
Oil & Gas
Location
Mexico
Our client, a Mexican company, is involved in the extraction, processing and commercialization of raw materials to the oil and gas industry. This company owns mines in Mexico and its leaders have extensive experience in the business. Economic projections for the oil and gas exploration industry in Mexico are positive, with heavy investment both by private and public sectors.

Challenge

The client is expected to double its production capacity and needs a working capital facility to finance its needs, which include incorporating new equipment to keep up with production demands and attract new contracts. The company is young and therefore shows operational and net losses and negative equity, but it expects to start generating profit by the end of this year. It has contracts to supply products and services to leading players in the industry.

Solution

The company is strong and has contracts with well-established customers. Oil and gas perspectives are positive for the short term and the company, despite being relatively new, is expected to become profitable in the near future. Given these strengths, ExpoCredit was able to quickly approve the company’s request for capital.
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