Food & beverage manufacturer needs its international invoices funded to grow its exports

“As a contract manufacturing business that sells both domestically and internationally, we had just secured some large customers in America. To meet the increased demand, we needed a cash flow solution that could facilitate international invoices. Not only did Tradeplus24’s line of credit provide the working capital we needed to take on these new business, the processes was much more smooth than we anticipated; no need to change any of our business operations: bank accounts were kept intact and day-to-day business operations continued as usual”

Tim – Managing director 

Industry

Food Manufacturing

Company size

Medium (<$5M Turnover)

Location

Global

CASE STUDY

Businesses that trade internationally face a number of challenges, but the biggest is getting paid.

When trading internationally, payments are slow and expensive. It can take up to 120+ days for a payment to arrive from overseas, by which time many businesses have missed profit margins and may even have been forced into heavy losses due to cash flow issues.

Global food and beverage manufacturing company with a $5 million turnover faced lengthy payment periods from manufacture to export that impacted the business’s cash flow to the extent that they couldn’t take on any new business.

To free up cash flow and welcome new business, the company sought a finance solution that would help them access working capital to keep the business running smoothly and allow new business to come on board.

THE PROBLEM

Lengthy payment periods

Facing lengthy pay cycles caused by the time from manufacture to export, the company’s cash flow was stalled meaning no new business could be generated. Long delays meant that a flexible finance solution was required to keep the business running smoothly and allow new business to come on board.

Limited Access to Finance Providers for Exporters

Getting a reliable trade finance credit line is hard. Many funders see export finance as either too risky, or unprofitable.

Tradeplus24 invoice finance solution is a trade finance facility that provides access to capital for exporters and international businesses who find it difficult to get credit lines from traditional institutions such as Banks and Export Credit Agencies; enabling them to grow their business with ease, flexibility and transparency.

Time Intensive Invoicing System

Not only did the company have to navigate significant cash flow barriers, the invoicing process was time intensive and inefficient. They would have to manually upload all invoices and the finance provider would have to verify all of the information. Combined with having to do their own discovery and contact the client themselves which significantly impacted widespread operations.

THE SOLUTION

A debtor backed line of credit with TP24

For the industry leading food and beverage supplier with reach across domestic and international markets, Tradeplus24’s international invoice finance solution enabled the company to free up their cash flow, meet increased demand and generate new business.

With Tradeplus24’s Invoice Finance Solution:

1.  Allowed the company to invoice early and provide advance invoicing for its manufacturers and distributors, speeding up and smoothing out the invoicing process.

2.  Fulfil contracts in the US and with the confidence that TP24’s line of credit provided, take on new clients in the US such as 7/Eleven and Walmart.

THE RESULT

The company was so impressed with the solution offered by Tradeplus24 they sought an additional line of credit to back another brand operated by the business that focused specifically on exporting goods from Greece to Australia. 

With greater access to working capital, improved cash flow and a streamlined invoicing process, the company had the confidence to pursue new business opportunities. With a scalable invoice finance solution, the company seized new business with major retail brands such as 7/11 and Walmart that they would not have had the capacity or confidence to facilitate if they didn’t have access to the invoice finance solution provided by Tradeplus24.

Free up your cashflow with Tradeplus24