Trade Finance Facility
Commencing three years ago the business experienced early and exponential success. The business enjoyed the support of some major Chinese suppliers who provided the business with exclusivity in distributing their products throughout Australia. Unfortunately, with the onset of Covid-19 and its impacts on the market here in Australia, this business slowed significantly and actually shrunk.
The business managed to continue trading throughout Australia’s first 12 months of lockdowns, albeit at a reduced capacity. In the rebounding economy the business had the opportunity to capitalise on the growing domestic market with a new cutting edge product, but after the impacts of Covid-19 drained the businesses cash reserves, it was left without the capital reserves to invest in stock to drive revenue growth throughout FY22 and FY23. The business was in need of a financing facility that would allow them to acquire stock from major international suppliers on favourable terms that allow the client to land the stock here in Australia and deliver to the end user prior to having to repay the financing facility.
Moneytech structured a $1.75m Trade Finance Facility which provided the client with incremental limit increases tied to revenue growth. The customer now uses the Moneytech facility to acquire new ranges of stock whilst their competitors struggle to import stock from China with significant delays. This facility will allow the business to capitalise on the rebounding market in Australia and is a key driving force behind their forecasted revenue growth.