DS-Concept has provided a $3 million export factoring facility to a trading company that sells metal packaging materials to buyers from the US, Peru, and Chile. The company, based in Shanghai, will use the accelerated cash flow to expand trade with western countries and escalate orders from buyers.
The partnership took shape as the client sought to grow its business but was stuck complying to the TT at sight terms popular among Chinese manufacturers in the industry. Consequently, it was not able to build up its AR or inventories and was facing low profitability. DS-Concept was able to provide financing for sales on open account 60-90 day terms favored by western debtors, who found the metal company’s raw materials to be in high demand in their markets.
Because the company was young and did not have any assets, it could only obtain a small loan secured by personal housing properties from its local bank. DS-Concept worked alongside the bank and leveraged the company’s foreign assets in the form of AR to provide additional working capital.
In one such case, DS-Concept’s global network paid dividends for the client—DS-Concept’s Peru office negotiated a payment solution with a buyer in the region, and the buyer agreed to allocate more orders to the company as a result.
“Our flexibility and our international capabilities allow us to provide financing as the client grows and expands into new markets,” said Alex Li, CEO of DS-Concept’s China office. “Additionally, establishing a relationship with Sinosure [a state-funded credit insurer in China] resulted in more efficient services and the ability to provide higher limits for debtors.”
DS-Concept is an international trade finance group headquartered in Germany with 16 global offices. DS-Concept works with SMEs worldwide to provide non-recourse factoring and supply chain financing. With over 150 employees located in 15 countries, speaking over 15 languages, our staff offers world class customer service and truly understands global trade.