|Grow Trade Solution||Import Trade Finance|
The energy efficiency solutions that are offered to his customers are very successful. The success is such that that in most cases the investment required by the customer to implement the solution is recouped in energy savings within 12 months. However the energy solution must be delivered before a customer can be invoiced. Part of the solution was equipping the customer with the appropriate energy efficient generators and lighting. The generators and lighting equipment had an order lead time of 60 days and needed to be imported from China.
Grow Trade Finance implemented a USD facility to initially finance the 30% deposit required to commence production and to provide the finance to pay the 70% balance so the goods could be shipped to Australia when completed. Over time Grow Trade Finance worked with our client to improve the credit terms they received from their suppliers. Through our line of credit we were able to assist the client to forego the 30% deposit required to commence production and have the cost of his stock paid in full only once it was shipped and the required documentation presented. Our client’s cash flow is now much improved and he can focus on maximising the national roll out of his business.