India ยท Automotive components
A components manufacturer won new orders from two European buyers but needed to fund raw material purchase and production well before payment arrived.
The new orders were roughly double the company's previous export volume. Existing working capital lines were sized against the old, smaller order book.
European buyers paid on sixty day terms from shipment, leaving a long gap to fund from order placement through to production, shipping and final collection.
We structured pre shipment finance against confirmed purchase orders and post shipment finance against the export invoices, so the facility grew with the new order book rather than being capped at historic levels.
Export credit insurance was arranged on the buyer receivables, which improved the terms two lenders were willing to offer once it was in place.
A USD 4m combined facility was agreed, covering the full cycle from raw material purchase to final collection.
The company delivered both new contracts on schedule and has since used the same buyers as references to win further export business.
Details are anonymised. Figures are rounded and identifying information is removed or altered to protect client confidentiality. Past transactions are not a guarantee of future outcomes.
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