Avocados from East Africa
The fruit and vegetable importer is one of our existing credit insurance relationships. In August, this company approached us with a pressing issue regarding avocados. The fruit and vegetable importer has specialised in this fruit, which has attracted increasing interest in the Netherlands in recent years. In fact, our country is the second largest importer of avocados after the United States. A significant part of the products are imported by our relation from East Africa and sold in the Netherlands and several other European countries.
Thanks in part to this specialisation, our relationship has been experiencing healthy growth for years. The company works pleasantly with East African exporters. There was no problem until the existing financier - a global logistics provider - withdrew from this market without prior notice. Thereupon, they approached Xolv with a request to find an alternative.
Combination purchase financing - factoring
From our wide network, we came into contact with a specialist financier. This reputable party originally operates from London, but has fortunately been represented in the Netherlands for several years with an expert team. We discussed the case with them on the basis of a concise teaser. Although this financier did not yet have any experience with suppliers from East Africa, they issued a term sheet after a brief preliminary investigation.
After some further research and an analysis of the importer's financials, the termsheet was soon converted into a final offer, with the financier pre-financing a large part of the purchases. They do this based on the invoice from the East African suppliers and the corresponding transport documents. Our relationship combines this procurement financing with a factoring contract from which the international procurement financing can be repaid each time. Both the East African exporters and our relationship are extremely satisfied with this solution, which will allow their mutual collaborations to move forward for years to come. We hope all avocado lovers are equally satisfied!
Also in need of (international) financing for your orders and debtors? Then contact the specialists at Xolv Finance.
