Aventura, FL – Trade Finance Solutions Inc., a leading provider of global trade financing solutions, announced they have provided a $4 million supplier credit facility to a Dominican Republic-based farmers’ association (“Company”). The Company imports soy, corn, and wheat products from U.S. suppliers and then manufactures and distributes agribusiness and food products to end customers in the Caribbean and Latin America. The facility will provide extended repayment terms on goods purchased by the Company from U.S. suppliers.
Supplier credit, also known as supply chain finance, optimizes cash flow by allowing businesses to lengthen their payment terms to vendors while providing the option for their vendors to get paid early. The buyer optimizes working capital and the supplier generates additional operating cash flow, thus minimizing risk across the trade ecosystem. The supply chain financing market has evolved in recent years as more companies are focusing on global growth and are looking to strengthen their relationships with suppliers.
“The facility will allow the Company to improve working capital by providing longer repayment terms on goods purchased,” said Bruce Sim, Senior Vice President of Trade Finance Solutions. “In order to grow and take advantage of opportunities, the Company required a financing partner who understood supply chain challenges and could provide flexible solutions.”