Finance & Distribution for Coconut Water Producer
A young, aggressive, importer of coconut water, was looking for a way to continue its impressive rate of growth, by focusing on its core ability to acquire market share. With seasonal issues to contend with, they found themselves in a continuing spiral of building inventories during one part of the year, so they could sell their product line throughout the year. This repeating cycle created difficulty in maintaining continuity in their financing base.
They had begun with a large infusion of capital, from ownership, but that source was exhausted. They talked with several banks but found little interest in financing their seasonal inventory requirements. They spoke with alternative finance companies, like AR backed lending institutions, but found the cost of borrowing simply too high. They needed an alternative solution and being forward thinking entrepreneurs, found the solution “outside the box”.
After analyzing their needs, and reviewing our findings with the client, Trade Service came up with a tailored solution, that would allow them to maintain full control over their business but provide the precise amount of financing and management support they needed. BMT Foods, assumed responsibility for the financing of inventory purchases, importing, warehousing and storage. In addition, BMT Foods would handle all billing, delivery and collections relating to the product. With BMT Foods robust knowledge base in the food and beverage industries and expertise in accounting and logistics, BMT Trade Services directly addressed their critical needs, allowing them to focus their energies on sales growth.
Our client expanded its product line and successfully landed a national retailer for distribution of its products. As a result, all of their products, as well as their AR are fully insured and protected. Product is delivered on time and collections are turning at an accelerated rate. A Month-End Report is generated recognizing all activity and financial results. The client receives their Month-End Report accompanied by a bank wire representing their profits, by the 25th of the month.