Dubai high-end seafood company uses Tradewind Finance's domestic factoring facility to support its growing sales following the pandemic
Considering the perishability of many seafood products, the seafood industry is extremely fast-paced. Tradewind Finance has been providing financing to clients in the fresh fish, canned fish, and frozen fish industries for years and has done so throughout the world. A seafood trader located in Dubai is using the funding to bolster the business after a two-year slowdown caused by the pandemic.
Having been in business for more than 15 years, this high-end seafood trader specializes in selling frozen fish, such as wild-caught and farmed finfish, Atlantic salmon, and shrimp. These high-quality varieties are sourced from Europe, Southeast Asia, and Latin America and distributed domestically to restaurants, hotels, and airlines.
The client expressed an interest in reducing their reliance on the bank after discussions about the financing partnership began. Tradewind offered a non-recourse receivables-based facility that does not require collateral to secure funding and, through credit protection, also safeguards receivables against buyer insolvency risks.
Tradewind's factoring facility of USD 350,000 has helped the client improve cash flow, which is often hindered by long credit terms with buyers. Sales are financed through the facility on open account terms of 90-120 days. Through the enhanced liquidity, the client is able to meet all of their working capital needs, including those related to the increase in orders.
“The hospitality industry has been hard hit by the recent pandemic. Due to the lack of support from their current banks, the client was looking for a financial institution that understood their challenges and would assist them in getting out of their financial bind,” said Soheil Zali, Tradewind's Regional Commercial Director for West and South Asia.
He continued, "Tradewind was able to offer the client collateral-free financing at a competitive cost, which enabled them to not only grow their company, but also maintain their existing borrowing arrangements."
In addition to its headquarters in Germany, Tradewind Finance has offices in Bangladesh, Brazil, Bulgaria, China, Hong Kong SAR, Hungary, Iceland, India, Pakistan, Peru, Turkey, United Arab Emirates, and the United States. By combining financing, credit protection, and collections, Tradewind offers streamlined, flexible, and best-in-class services to exporters and importers around the globe.