Company profile and market:
Company in the manufacturing sector of chemical components for the agri-food industry. Company with a turnover of less than 500 € Mn, and less than 2,000 employees.
The company belongs to the agri-food industry value chain.
In 2018, the sector was starring in difficulties resulting from a historic drop in the prices of agri-food sector products due to the strong crop productivity of previous years. This caused all companies in the sector to suffer reductions in their margin.
Company needs:
In this environment, the company needed to improve margins and allocate increased production to higher value-added products, increase the diversification of its markets, and achieve cost normalization.
The company implemented a global strategy (structural, commercial and financial) for this purpose, but it was subject to syndicated bank financing and found it difficult to obtain new working capital financing in a short period of time, as a result of its internationalization strategy and higher-margin production portfolio.
The Finalbion Proposal:
Due to the restrictions of the new indebtedness presented by the company as a result of the syndicated loan, we proposed a Factoring line, perfectly compatible with its bank financing, as it was without recourse to the assigning company. Furthermore, it did not reduce the indebtedness capacity of the authorized debtors as it was a financing that did not have an impact on CIRBE.
With this proposal, the company was thus able to finance with us a volume of just over 72 million euros of its customers' invoices and to start the execution of its new commercial plans during the period of negotiation of a new bank financing structure adapted to the new situation of its market.
