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Comprehensive supply chain finance

Comprehensive supply chain finance, Manchester, Cheshire, UK

Having previously received finance from their bank, a local business, currently the brand leader for their product, required cash flow for a considerable new large order from the United States.

How XL Business Finance helped

The client had marketed and developed the product considerably resulting in a very substantial new order from a major US based food and beverage business. This newly won order for the fruit snacks created a major cash flow problem, which was unable to be resolved via its existing banking relationships.

The requirement for 100% cash covered letters of credit was unworkable and impossible for the client to finance. They were introduced to XL Business Finance through their accountant.

XL Business Finance was able to arrange a $2m solution to procure apples and pay the factory. The finance company was secured on credit insured payments from the US buyer.

What were the benefits?

Following the initial funding phase which resulted in 39 full containers of the product being bought and delivered to the USA, the client is collecting new orders to be funded by standalone supply chain finance. The client, who enjoys substantial growth opportunities, is secure in the knowledge it has the cash to fund the supply chain on the back of future confirmed.

Supply Chain Finance can run alongside existing banking arrangements. In fact banks often encourage standalone facilities as a business’s turnover profitability can be increased without increasing existing bank exposure.

See also;

Fast business loans

Factoring

Invoice discounting

Trade Finance

Bad debt protection

Payroll finance

Small firms loan guarantee