Fueling Manufacturing Success
How Invoice Factoring Fueled Material Handling Success
Product
Factoring
Transaction
$5,000,000 USD.
Industry
Material Handling
Country
Mexico
Mexican company with 15 years of expertise in the material handling industry. Renowned for manufacturing top-notch products, including steel, plastic, thermoformed, corrugated, engineering plastics, stitched canvas, foam, and wood materials, for the automotive industry's leading companies.
Client Overview
Resources for the Company’s Growth
The client's main challenge lies in their EBITDA being stretched to cover interest expenses. Additionally, as a manufacturing company, they face inventory complexities due to the shift in sales order patterns, resulting in increased raw material inventory. To address this situation, the client is considering factoring as a potential solution to optimize their cash flow and improve supplier payments.
“Factoring will help us pay our most important suppliers, achieving savings from cash payments, and in turn, we will be able to reduce financial costs that we already have with the suppliers".- Client's CFO
Liquidity for the company’s growth
Expocredit played a vital role in empowering the company to conquer cash flow obstacles and stay competitive in the market. Through a customized factoring line of $5,000,000, Expocredit facilitated the company's effective response to soaring raw material prices. This invaluable assistance ensured smooth procurement of essential resources, guaranteeing uninterrupted production and allowing them to maintain their price competitiveness while upholding their dedication to high-quality products. With the support of Expocredit, the company navigated through the challenges of increasing raw material costs, sustaining its path of growth and triumph in the material handling industry.
