Company profile and market:
Company with a turnover of less than €3,500 Mn and less than 3,000 employees.
The company is committed to the design and execution of plants for the production of clean fuels, petrochemicals, hydrogen, electricity, etc.
It has a team of top engineers and experts in planning, control, logistics and quality that guarantees a high level of commitment and the highest level of efficiency and sustainability.
The company operates in nearly 60 countries globally and the last 18 months have been a challenging time to maintain the level of activity due to the Covid pandemic.
Some major projects have been cancelled or slowed down, leading to a financial strategy of protecting the level of strength of your operating cash flow. As this is project management, it implies the need for very efficient management of your working capital investment.
Company needs
The efficient management of its working capital and the protection of its operating cash flow has become the cornerstone of its treasury strategy. This strategy involves guaranteeing the functioning of its supply chain by giving more comfort to strategic suppliers, many of whom are international.
The company has extensive support from both domestic and international banks, but found the option of facilitating access to invoice financing for its domestic and international suppliers through alternative non-bank working capital financing programs to be very useful.
Finalbion's proposal
In July 2020, we launched a Reverse Factoring (Confirming) line where our client offered the option of advancing its invoices, without recourse, to some 30 suppliers. In this way, the supplier also complements the credit insurance granted by its insurer, and can assume more risk with this customer.
Many of these suppliers are international and thanks to our platform, which is also available in English, German and French, we have facilitated their access to fast and convenient financing in countries where access to alternative or non-bank financing is not as agile.
In this first year, the Reverse factoring line has financed more than 38 million euros to these suppliers, and several of these suppliers have shown interest in our entity to complement their sources of financing.
