The Canadian Exporter:
The Canadian exporter, Husky Injection Molding Systems, is a leading supplier of injection molding equipment and services to the plastic industry. The company designs, manufacturers and integrates injection molding systems in the plastics industry to provide packaging for beverage, medical and consumer electronics. They also provide ancillary services including: performance development, factory planning, training and asset management. They have over 40 service & sales offices and 4000 employees across 100 countries. Based out of multiple countries, including Canada. The company has an ongoing relationship with a buyer in Sao Paulo, Brazil who wants to purchase an additional system from the company.
The Buyer:
The buyer is a Brazilian based company, PetPolymers, founded in 2015 and produces plastic products including: soft drinks, cosmetics, personal hygiene, cleaning products and food and beverage services. They also have a strong environmental strategy to improve upon and preserve the environment by using solar energy, investing in forest preservation and reducing waste through recycling. They have a diverse client base.
The client was keen to purchase a new machine from the company which would enable them to improve energy efficiency, lower labor costs and reduce the amount of raw material used.
The Challenge:
The buyer was looking for preferential rates that would be less than local finance companies. Brazil’s base rate is much higher than Canada’s (base rate of 6.5% vs 1.75%). The buyer turned to the company for support and the company recommended Elevate Export Finance Corp, an existing provider of buyer finance credit to buyers of the company.
Solution:
Elevate engaged the buyer fast and efficiently, providing a quoted solution within 48 hours. The offer was attractive and accepted by the buyer. Elevate provided a five-year term loan for USD $500,000.
The result:
Elevate’s team of integrated, international experts, led by Francisco Garcia created high degree of speed and efficiency. The team was able to quickly package, underwrite and obtain EDC approval. The customer was then able to have the customer sign the deal and win the sale. The buyer had freed up capital and with access to Elevate’s finance options were able to make additional purchases from the exporter.
About Elevate Export Finance Corp:
· 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