The Canadian Exporter:
The Canadian exporter, designed, built and validated with the authorities, a food safety system that enabled the safe cleaning of nuts. The system was patented shortly thereafter and is now in global demand. Based in Ontario, Canada, the company is medium sized and privately owned.
The company sourced a potential customer in Paraguay who wanted to purchase their system.
The Buyer:
The buyer is a Paraguay based company and supplies premium organic specially food ingredients around the globe. They grow, process and package a selection of ‘certified organic’ seeds, beans, herbs, teas and citrus peels, working directly with a select group of medium-sized growers and small holder farmers in both Argentina and Paraguay. The product is high quality and fully traceable product in the market place.
Many of their clients are wholesale buyers, distributors and private label companies principally based in the United States, Europe and Asia.
The Challenge:
The buyer was a New Corporation (New Co.) and did not meet the standard banking requirements both domestically and with international lenders. This also meant that the company was unable to pay for the food safety system from the Company without financing. The company were made aware of this and contacted Economic Development Canada (EDC) for help. EDC referred them to Elevate Export Finance who engaged with the buyer and their sister company to create a structure that would work for both the sister company and the New Co.
Solution:
Elevate engaged the buyer and their sister company to work on a finance structure that would work for them both. Using its Latin American experience and a quick service turnaround
Elevate provided a three-year term loan for USD$664,000 using the sister company as a guarantor. In addition, the finance structure did not require collateral or personal guarantees.
The Result:
Elevate’s team of integrated, international experts, 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 preferred rate over a 3-year term provided to the buyer helped the company enter a new market and expand their export sales. 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:
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