Case Study Manufacturing Growth
Expocredit Powers the Success of an Auto Parts Manufacturer
Product: Financial Factoring
Transaction: $5,000,000
Industry: Auto Parts Manufacturer
Country: Mexico
A leading Mexican auto parts manufacturer with 15 years of experience in the material handling industry, specializing in the production of a variety of materials, such as steel, plastic, thermoformed, corrugated, engineered plastics, sewn canvas, foam, and wood products. Its core business revolves around creating advanced shelving and thermoformed material handling products, focusing on intricate engineering and design to meet customer demands. Additionally, the company ventures into innovative industrial solutions, diversifying its offerings to include shelving, mobile structures, and integrated mechanisms, thereby pushing the industry forward.
Client Summary
15 years of operation Automotive National and international operations Main objectives are automotive companies Funds for Scaling Navigating Margin Pressures Between May and November 2022, substantial investments were directed to expand the plant’s production capabilities and match growing customer demands. However, these investments impacted the company’s profit margins, necessitating strategic intervention.
«As a manufacturing company, our inventory encompasses raw materials, work in progress, and finished products, with raw materials being the largest portion. This increase in inventory is a direct response to the sales area no longer operating with low sales orders. Since raw material inventory poses a challenge, we have understood that a proactive solution is fundamental. That’s why a tailored factoring line presents itself as the answer to optimize our inventory management and drive growth.» – Client
How Expocredit Helped
Empowering Growth The solution lay in Expocredit’s agile and efficient factoring process. This strategic collaboration allowed the company to expand its financial capabilities and strengthen its market presence. Expocredit’s provision of a factoring line in the amount of USD $5,000,000 breathed new life into the company’s efforts. This capital injection not only enabled them to navigate the margin challenges posed by recent investments but also created room for improved inventory turnover. Through this symbiotic collaboration, the company embraced growth opportunities with renewed vigor, charting a path toward innovative success in the ever-changing landscape of material handling and industrial solutions.