Tradewind has completed a $600,000 trade finance facility for a high-quality organic honey exporter based in Brazil that sells mainly to buyers in Europe and North America. The exporter is using the facility to increase sales, retain and expand their customer base, and achieve financial independence from their European parent company amidst new growth requirements.
With rising global demand for honey—whose health benefits are gaining popularity among consumers—the client sought out Tradewind for financing to accommodate their capital needs for growth and to alleviate their reliance for funding on the company’s European headquarters. Honey production was hampered in Brazil in past years due to drought, but with the return of better weather conditions in the country, the client wanted to capitalize on the upswing of the sticky sweetener.
Tradewind is financing sales to the client’s customers on 30-, 60-, and 90-day open account terms. The funding will enable the client to better plan their forecasts, increase their exports, and be more competitive in the international market with the ability to accept and offer longer payment terms. The added cash flow from Tradewind will also position the client to work with a greater range of suppliers.
The financial firm not only offered flexibility in customizing the right working capital solution for the honey exporter, covering different payment terms as needed and able to scale funding with sales growth, but it also shared a similar structure with the client—namely, headquarters in Europe with subsidiaries in Latin America—making it a relatable partner who understood the type of company structure at hand and the dynamics that come with it.
“The company came to us with a need for financing to gain independence from their parent company and increase their sales to the European and North American markets. We managed to fulfill their needs successfully and helped them to develop a strategy that will contribute significantly to the growth of the company. They chose us because of our global network of offices, international capabilities, and solid reputation in trade finance, qualities which made us stand out in the Brazilian market and which we leveraged in servicing our client,” states Marcelo Lorenzetti, who handles sales for Tradewind in Brazil.
Tradewind (formerly DS-Concept) maintains a network of offices all over the world, including Bangladesh, Bulgaria, China, Hong Kong, Hungary, Iceland, India, Pakistan, Peru, Turkey, UAE, and USA as well as the headquarters in Germany. Combining financing, credit protection, and collections into a single suite of trade finance products, Tradewind brings streamlined, flexible and best-in-class services to the world’s exporters and importers.
