Case Study-Fueling Success A Transformation, Oil company factoring
Case in the Transportation Industry-Oil company factoring
Product: Factoring Line – Transaction: Line increase to $4,000,000 USD – Industry: Oil & Gas – Country: Mexico
A prominent Mexican Oil company factoring specializing in the commercialization of gasoline and diesel, with 100% Mexican capital and established in the state of Durango in 2018. It acts as an associated distributor for the country’s main suppliers, such as Halliburton, and offers high-quality products at competitive prices. Its operation stands out for making direct deliveries from supplier to customer, without intermediaries.
Client Summary
6 years in the market Oil Industry Local and International Operations Oil companies Competitive Prices competing with market prices Despite the client’s exponential growth since its founding in 2018, the company faced challenges in terms of margin consistency and the need to increase its working capital. Despite strong sales growth, gross margins fluctuated due to constant pressure to reduce prices because of illegal gasoline imports.
«Since our operations began, we’ve experienced remarkable growth. However, we’ve faced obstacles in the consistency of our margins and the need to increase our working capital. Illegal gasoline imports have put constant pressure on us to reduce prices, which has impacted our gross margins.» – Client CFO
How ExpoCredit Helped
Debt-Free Invoice Advance The collaboration with ExpoCredit has been a success story for the client. The company has managed to maintain its exponential growth, with projections indicating that it will reach revenues of $50.6 million by the end of 2022. Furthermore, the client has strengthened its financial position and has been able to maintain its liquidity and ability to seize opportunities in the volatile fuel market.
In summary, thanks to the partnership with ExpoCredit and access to a factoring line, the client has been able to overcome its financial challenges and continue its successful growth trajectory in the fuel commercialization industry.