The Canadian Exporter:
The Canadian exporter (the Exporter), is a leading, global supplier of compressed natural gas (CNG), exporting to 30 countries globally. Established in 1984, the exporter has gone on to deliver over 1800 CNG systems across the globe.
Earlier this year, the exporter approached Elevate Export Finance Corp. to assist in the sale of one of their CNG systems to a leading supplier of CNG in Mexico.
The Buyer:
The buyer, is a Mexican company selling gasoline to motorized vehicles. With over 15 years of experience the buyer’s goal is to be an industry leader in ‘multi-fuel’ service stations. Using advanced technology and alternative fuel systems, the buyer believes that providing 100% ecological clean fuel services will enable it to reduce the price of fuel to the consumer and increase company returns.
With the development of its first multi-fueled station in Hermosilio, Mexico, the buyer turned to well known CNG systems specialist, to provide it with a CNG system.
The buyer plans on growing its business and future purchase orders from the exporter are likely.
The Challenge:
While the buyer has access to credit services in its home market, the interest rates are much higher than those in Canada. So, the buyer approached the exporter for alternative finance to purchase the system. Knowing that this could be the first of many future orders, the exporter approached Elevate Export Finance Corp. for its experience in finance and sales execution to support the deal.
Solution:
Acting as the exporter’s ‘in-house’ finance business, Elevate Export Finance Corp. engaged the buyer and worked with both the buyer and the exporter to facilitate a buyer finance contract for the buyer. Providing a competitive and more attractive interest rate the buyer accepted the offer.
Elevate provided a five-year term loan for USD $ 305,647 on a purchase order contract price of USD $342,490.
The result:
Elevate’s team of integrated, international experts, led by Chief Business Development Officer, Francisco Garcia and Elevate President, Ed Walsh made it easy for the exporter and buyer to conclude their business. In addition, the team was able to quickly facilitate, underwrite and obtain EDC approval.
About Elevate Export Finance Corp:
Elevate Export Finance:
· We are the leading provider of advice and support to Canadian SMEs on the global stage, with in-market service support in 13 different countries.
· The firm’s diverse team of finance experts, strategists, analysts and sales professionals has over 100 years of banking and international finance/trade expertise.
· We are a service delivery channel for EDC on customer financing for deals under $10MM