A growing mid-cap company
Lead your factoring project.
Choose a solution that is both economical and effective for financing your growth.
Requirements of growing mid-cap companies
The benefits of factoring
- A sustainable and adaptable source of financing
- Long-term confirmation
- Deconsolidation in accordance with IFRS, French GAAP and US GAAP
- Quick roll-out (circa three months)
- Option to pool cash-flow
- Resilient to changes in shareholding
A closer look at factoring for growing mid-cap companies
Is your company growing in its domestic market and has already started to export to the rest of Europe and to other continents? In the coming years, are you planning to open subsidiaries abroad, which will have a wider remit than their domestic markets?
If so, then you need to anticipate the financing requirements for this growth by choosing one or more factors able to assist with your new growth operations. For each new launch, it is necessary to scale up your financing lines, expand coverage of client risks, receive credit authorisations and undertake technical implementation.
Business case
Our assignment
Tender process and implementation of a dual-stage factoring agreement to support company growth
What we did
- Research and tender process with factors and credit insurers on the market
- Obtain a credit line of €30m for three countries: France, Italy and Spain; with the option of quick expansion to the Benelux and the United Kingdom
- Confidential off-balance sheet agreement
Background
An agro-food group undergoing organic and external growth
Client features
- Business activities: Manufacture of fresh agro-food produce
- Countries: France, Italy, Spain, Belgium, the Netherlands, the United Kingdom
- Clients: Large and mid-sized retailers
- Type of contract: Confidential balance assignment
- Credit line: €30m, rising to €41m
- % of financing: 90% of assigned receivables
- Cost: less than 1%
- Term: open-ended
- Credit insurance: inclusive
Aims
- To find a long-lasting factoring solution to supplement the company’s short-term financing needs
- To obtain more competitive financing terms through a bank other than the bank in the historic pool
Our added value
- Comparison and acceptance of the best possible market conditions
- Supporting various finance teams for project oversight and implementation
- Consultancy in choosing a financial partner
- Supervision and support of the finance team to integrate new entities over the longer term (six months later)
