Financial Group

Textile Industry

ExpoCredit helped this company keep growing its production for a big client.

Deal Summary

Product
Factoring
Funding Line Amount
Increased by 2MM
Company Type
Denim production
Industry Type
Textile
Location
Mexico
Our client is a vertically integrated Mexican company that manufactures more than 800 thousand garments monthly, in which it handles state-of-the-art technology, full-package service, and automatic refill. The company has more than 30 years of experience manufacturing articles of clothing using denim fabrics. They manage the entire production process of converting cotton fibers into yarn, which is then dyed to obtain the final fabric. The company’s best asset is its capacity to deliver in a period of 6 to 8 weeks to their clients in the United States, Canada, and Mexico. They own their embroidered and printed label factory and serve clients such as Walmart and BJ’s in the United States.

Challenge

During 2020, the company’s progress deteriorated due to the pandemic. The company began to experience cash flow problems while receiving an increase in orders from one of its big-box clients. To fulfill the new demand, with payment terms of 30 days plus 15 days in transit, the company needed to obtain new capital.

Solution

Despite the company’s obstacles during the pandemic, the quality of its clients and their excellent payment history made them a strong candidate for a higher line of credit. ExpoCredit increased the line of this client in 2MM. This factoring line will help the company obtain the capital needed to continue operations and increase sales in the future.