Incomlend provides the pan-European metal trading firm with the working capital required to maintain sales cycles and keep its business during challenging times. Incomlend Invoice Financing Solution will also enable the metal trading firm to serve its base of environmental, social and governance (ESG) friendly customers.
The client is a pan-European metal trading firm whose buyers comprise some of the world’s most environmentally-friendly steel companies.
Among its largest customer includes a European steel company that created the world’s first metallurgical coal-free steel.
Due to pandemic-driven supply chain issues, supply of ferrous metals is on a decline.
Meanwhile, a typical trade cycle in the industry can take up to four months. Moreover, it takes the metal trading firm an additional 90 days to cash in an invoice that can range anywhere between €700,000 up to €2.5 million.
These extended cycles and payment terms, as well as substantial invoice sizes, can impair their financial agility to maintain their business operations.
With Incomlend invoice financing solution, the metal trading firm can cash in an invoice as early as three days after the goods are shipped to the buyer.
It will equip them with the working capital required to make payments when purchasing raw materials from their own suppliers.
Incomlend provided the pan-European metal trading firm with a multi-million-dollar quick turnaround working capital solution to finance their operations, generate revenue and serve their ESG-friendly customers amid challenging times.
ESG is at the top of the agenda for many businesses and investors. The firm will now be able to make more ESG-centric business changes by leveraging the financing solution to invest in materials that are sought after by sustainable steel companies.
