United Arab Emirates ยท Commodity import and distribution
An importer was arranging a fresh letter of credit for every shipment, which slowed purchasing and cost it early settlement discounts.
The business bought from twelve suppliers across three continents and sold into regional distributors on thirty day terms. Each purchase required a separate bank approval.
Suppliers offered discounts of two to three percent for prompt payment that the company could rarely take.
We built a facility case around the whole purchase to pay cycle rather than individual shipments, evidencing supplier performance and buyer payment history over three years.
Two trade finance specialists and one regional bank were approached. Insurance on the receivable book was arranged in parallel so the credit committee saw a covered exposure.
A USD 6m revolving line was agreed with a one hundred and twenty day cycle, drawn against approved supplier invoices.
The company now takes prompt payment discounts on most purchases, which offsets a meaningful part of the funding cost.
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.
If this looks close to your situation, describe the requirement once and we will structure it and approach the providers whose criteria match.
Start a funding request