Welcome To. Growcap Finance

Transcription

1 Welcome To Growcap Finance

2 A changing environment..

3 USA Ireland

4 Freeing Up Working Capital Pre-Shipping (Supply Chain/ Trade Finance) Stocking facilitates the purchase of stock for planned sales PO finance facilitates the purchase of stock only with a purchase order Post Shipping Invoice Discounting / Finance sell the Debtor book Single Debtor Sell an individual debtor on an ongoing basis Single Invoice Once off sale of an invoice Reverse ID Customer arranges discounting of invoices for its supplier

5 Why Use Supply Chain/Trade Finance Expand your business with existing or new customers. Free up working capital for other purposes as the lending is off Balance Sheet. In a position to negotiate payment terms and price with confidence. Monthly costs which compares favourably with the market. Facility terms are typically over the life cycle of a trade (usually days), or on a revolving basis (up to 12 months). We control the transaction and minimise the risk while you do business with new suppliers or new customers

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7 1) Collection On Documents Agreed in advance as part of the sales contract No bank guarantee involved Transaction initiated by exporter goods shipped to importer Entrusts related shipping documents to bank for collection of funds Exporters Bank sends documents to importers bank with instructions : -If no credit terms agreed > Release against payment only -If Credit terms agreed( i.e. 60 days after date of shipment) > Release against acceptance of Bill of Exchange Importer gets control of the goods

8 2) Letters of Credit A pre-shipment guarantee Irrevocable Impacts importer s credit facilities Payable against documents not goods Letter of Credit can be payable: At sight upon receipt of documents from exporter s bank At a future date (agreed credit term) Discountable once accepted Standby Letters of Credit

9 Growcap Finance s Offering SME Supply Chain Finance A unique supply chain finance product for the SME sector Financial Flexibility Takes ownership of wholesale trades freeing up client working capital Security All trades are credit insured. All finance is offered on a deal by deal basis

10 What we do? A specialist provider of trade finance for imports and exports within UK and Ireland SME sector. Deal with commercially focused decision makers. Fund up to 900k ( 750k) for both domestic and overseas purchases, opening Letters of Credit to enable client business to turn hard won orders into profit. Support the transaction based on assessment of management competence and integrity. Finance is provided at the entry point of the Asset Conversion Cycle. Both Client and onward trade is credit insured for 90%.

11 How does it works over day cycle?

12 Trade Finance Timeline / Process Client gets an order from a customer which it is not able to fulfil due to financial constraints. Growcap, steps in and acts as principal in transaction. It buys the goods and sells to the client on terms, in keeping with its cashflow. Growcap works with its client, to negotiate with the supplier to provide payment, or means thereof (L/C etc.). Following inspection, the delivery of goods are arranged. Goods are delivered to the client or directly to the end customer. It is important for Growcap to ensure control throughout the transaction. Client invoices customer as agreed at the outset. Client or customer settle directly with Growcap. Where a client has invoice finance in place an agreement will be sought for advances to be paid to Growcap. Order placed Goods shipped Goods received by client Goods despatched to customer and invoice raised Invoice settled 5 90 days 10 days days days days Trade financier normally wants this to be 120 days

13 Tel: colm.oreilly@growcapfinance.com