DS-Concept Announces $3 Million Credit Facility for Chemicals Trading Company in China
DS-Concept has provided a $3 million credit facility to a trading company specializing in chemicals that are widely used in coatings, adhesives, X-ray films, and refinery. The company, based in China and exporting to the U.S., Europe, and South America, is applying the facility to finance open account terms with buyers overseas, fill more orders, and pursue additional commodity opportunities with larger clients, furthering its coveted position as a leading chemicals supplier.
As the US and Europe phase out niche chemicals markets due to obsolete equipment, environmentally abrasive procedures, and expensive upkeep, the Chinese company, with new and sustainable components, has become a stronghold for the industry and requires accelerated cash flow to meet the demands and increasing order volumes of foreign buyers. Although its state-owned suppliers operate under TT before shipment terms, buyers abroad, including prospective commodity clients, request large orders with 90-day terms.
With limited assets that make it difficult to work with banks, the company turned to DS-Concept to replenish its liquidity through funding for open account 60-120-day terms and financing against letters of credit. DS-Concept fit the bill because of its flexibility, ability to fund in U.S. dollars, and resources to manage the company’s buyers, thereby enhancing its financial efficiency.
Alex Li, CEO of DS-Concept China, states: “We are pleased to utilize our international resources and expertise in trade finance to help our client succeed in the changing landscape of China’s manufacturing industry. With our help, the company is better positioned to take larger orders with more favorable terms and is able to foster stronger relationships with its suppliers and buyers.”
The DS-Concept Group maintains a network of offices and affiliates all over the world, including Bangladesh, Bulgaria, China, Hong Kong, Hungary, Iceland, India, Pakistan, Peru, Turkey, UAE, and USA as well as the headquarters in Germany. Combining financing, credit protection, and collections into a single suite of trade finance products, DS-Concept brings streamlined, flexible and best-in-class services to the world's exporters and importers.