Case Study Base Oil Company
Base Oil Company A base oil trader with an invoice finance line wanted a higher limit on the receivables side and to use purchase order finance to trade higher volumes and work with other markets
What Happened Suppliers provided the trader with credit for 30 days and after small truck loads were received by the end buyer; the trader would discount the invoices raised to them. TFG brought in larger advance rates on the invoice side; allowing the trader to receive higher funds against invoices. They also brought in a trade line that allowed the company to pay for product on the supply side.
Turnover $35m USD Funding Amount Requested $13.8m USD Item Base Oil Finance Solutions Trade Finance Line ✉ Invoice Finance Line ⼯
Benefits The main advantage here was that the company were able to buy in higher volumes and also receive supplier discount. The company also had ambitions to start trading in another country and TFG assisted by replicating this structure in another jurisdiction. The total lend was 13.8m USD. This was roughly split between trade and invoice finance lines; to allow a scalable trading model â—ź
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