“Opportunities don’t happen. You create them.” – Chris Grosser02 June 2023
UAE’S AGRI-COMMODITY TRADER LEVERAGES CAPO FIN CORPORATION’S EXPORT FACTORING FACILITY TO FUEL POST-PANDEMIC SALES GROWTH FOR ITS FOODSTUFF EXPORTS TO FINLAND
The COVID-19 pandemic had a profound impact on businesses across the globe, with the foodstuff industry being no exception. However, amidst the challenges, one foodstuff trader from Dubai has managed to navigate through the turbulent waters and emerge stronger. Thanks to the support of CapoFin, the company has been able to sustain and expand its operations, catering to a growing demand for foodstuff across the globe.
A Challenging Landscape: The pandemic disrupted supply chains, limited international trade, and affected consumer behaviour. As a result, businesses in the agri-commodity space faced significant challenges, including reduced sales, cash flow constraints, and increased uncertainties. Adapting to the new market dynamics, it was mandatory to find innovative solutions and financial support to revitalize operations and meet growing demand.
CapoFin’s factoring facility arrangement: Recognizing the potential of the trader, Capo Fin Corporation stepped in to provide a much-needed lifeline. Their international factoring facility arrangement from their established lender, tailored to the specific needs of the company, unlocked immediate liquidity by leveraging its outstanding accounts receivables. This allowed the trader to access working capital quickly and efficiently, without the need for lengthy approval processes or traditional collateral requirements.
Key benefits for the trader:
1. Cash Flow Optimization: CapoFin enabled the company to convert its accounts receivable into immediate cash. This infusion of funds allowed them to meet their day-to-day expenses, manage their supply chain effectively, and take advantage of growth opportunities without being burdened by delayed payments.
2. Flexible Financing: Unlike traditional lending, which often relies on fixed loan amounts, CapoFin arranged flexible financing based on the trader’s sales volume. This dynamic funding structure meant that as sales increased, so did the available capital, providing the necessary financial agility to seize market opportunities.
3. Risk Mitigation: CapoFin’s lending partner assumed responsibility for credit control, collection, and trade risk management, reducing the company’s exposure to non-payment or default by customers. This risk mitigation allowed the trader to focus on its core operations and sales growth while leaving the expertise of credit assessment and collection to the lender.
4. Expansion and Market Penetration: Empowered by the consultation support from Capo Fin Corporation, the trader was able to expand its product range, invest in marketing initiatives, and explore new market segments. This strategic approach not only helped them solidify their existing customer base but also allowed them to capture new customers and increase market share.
5. Building Stronger Relationships: The partnership with CapoFin went beyond financing. Their expertise in international trade and global networks provided the foodstuff company with valuable insights and connections. This enabled them to forge stronger relationships with suppliers, distributors, and potential customers, leading to long-term business opportunities and sustainable growth.
Dubai’s foodstuff trading company’s success story following the pandemic serves as a testament to the resilience and innovation within the industry. The strategic collaboration with Capo Fin Corporation has been instrumental in their ability to navigate the challenging business landscape and capitalize on emerging opportunities. By unlocking working capital, mitigating risk, and providing valuable expertise, CapoFin has played a pivotal role in supporting the foodstuff trading company’s growth and driving their post-pandemic success.
The client: “The successful approval of the trade facility arrangement has been a game-changer for my business. It has enabled smoother processes, and improved supply chain efficiency. I am grateful to Capo Fin Corporation’s team, for their expertise, support, and dedication in making this trade facility arrangement. I highly recommend their services to any business looking to optimize their working capital and supply chain financing and unlock new growth opportunities.” – Mayur (Agri-commodity trader from the UAE)