DS-Concept has completed the funding of a $1.5 million trade finance facility for a U.S. subsidiary of an Iceland-based seafood processor and exporter. The client, an importer and wholesaler of fresh and frozen Atlantic Cod from Iceland, has received a tailored, comprehensive trade finance package including non-recourse factoring and supply chain financing. The client intends to use the facility to support its financial independence from its parent company and fuel its growth with both new and existing customers in the United States and Canada.
The recently-established subsidiary was experiencing exponential year-over-year growth when it sought out DS-Concept to help accommodate its rapidly increasing orders. As a seafood wholesaler selling to a diversified group of retailers and distributors on a revolving basis, the client required improved cash flow to continue its growth trajectory. DS-Concept’s trade finance facility provides a steady replenishment of working capital which puts the client in a position to maximize growth.
Offering lower prices than its former financial partner, DS-Concept, with extensive experience working with seafood businesses throughout the world, met the client’s needs with its understanding of the industry and its international capabilities. Upon shipment from Iceland, DS-Concept finances the purchase from the client’s vendor, bridges the in-transit period until the goods are imported and delivered to the buyer, and then factors the invoice on a non-recourse basis. The factoring facility and vendor finance program are expected to bolster the working relationships the client has with its suppliers and buyers and position it for further expansion.
“Because of our niche in the seafood industry and the fact that we have offices in both the U.S. and Iceland, we were able to leverage the strength of the Icelandic parent company to structure a creative solution for our client in the U.S. With both factoring and supply chain financing from DS-Concept, the client will be able to maximize growth with existing customers and capitalize on growth opportunities with prospective customers,” says Brian Dowd, Vice President of DS-Concept’s New York office.
DS-Concept is an international trade finance group headquartered in Germany with more than 20 global offices. DS-Concept works with SMEs worldwide to provide non-recourse factoring and supply chain financing. With over 150 employees located on 4 continents, speaking over 15 languages, our staff offers world class customer service and truly understands global trade.