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Finished Products Financing
Delivering value to top global motorbikes manufacturer by financing & distributing to its dealers
Customer facts
Geography - Europe
Sector - Automotive
Services - Purchase, warehousing & distribution of Inventory
Customer challenge
A European motorbikes manufacturer was facing marketing & financial constrains driven by the sale of products to some of its fast-growing international markets. The recent acquisition of the local importer companies was driving an increased assets balance & shrinked cash. Therefore, the client was highly interested to move the ownership of produced motorbikes, spare parts & merchandising material to a 3rd Party Distributor, which could hold ownership of the titles, anticipate revenue recognition & ensure an Off Balance sheet effect.
Opportunity Scope:
The customers wanted to anticipate revenue recognition, free-up cash, & retain control upon the strategic markets in scope.
EVDO solution
Efficient management of the working capital process related to sales of finished products by the producer. Anticipated liquidity, driven by true-sale transactions & immediate revenue recognitio n. Cashflowpositive position as goods are sold very early in the sale cycle. This, combined with third-party TradeCo absorbing extended payments terms for the dealers, meant that inflow of cash can be materially accelerated. Complete off-balance sheet solution in conjunction with an integrated end-to end logistic service. Marketing advantage in terms of retaining control over its distribution network & capacity to pursue planned mid/long-term international expansion strategy in terms of market positioning.
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