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International Logistics
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Size of business and margin profile was affecting the ability to raise debt
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Advance payments to suppliers and credit provided to customers was enlarging the working capital required to run the business
Challenges
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Our analysis indicated that structured debt solutions would be best suited to the business given there was no previous track record of raising debt and size of the business was still small.
Analysis
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In the initial phase, we helped set up a supplier financing program and a structured receivables financing program that reduced the working capital cycle by 10 days.
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As the business achieved scale and built a credit track record we introduced a bank which reduced the over all cost of debt capital for the business
Impact
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