Export Factoring Case Study
Exporter Has It In The Can
Despite many exporters' frustration at the red tape surrounding international trade one firm has recently doubled the size of its premises and added a third company to its portfolio thanks to successful overseas expansion.
Managing director Ian Williams established TG Can Technology six years ago to deliver high-precision tooling and machinery to the can packaging industry. He has recently expanded his business into overseas markets, hoping to capitalise on increased trading opportunities and stay ahead of the competition.
In the early stages of expansion TG Can Technology experienced difficulties with slow paying customers - something that troubles many exporters. This coupled with the inevitable language, cultural and legal differences as well as the logistics of getting goods delivered to customers on time as goods can be delayed by several weeks while in transit and going through customs.
Ian said: "We were funding our overseas business through our bank overdraft but we found that we constantly hit ceilings, it just wasn't flexible enough to keep pace with our growing overseas business."
Ian investigated alternative options and identified Export Factoring: "It seemed like the perfect solution for us and we chose to work with Bibby Financial Services because it offered the most flexible, comprehensive service. We benefit from receiving funding up to 80% of the value of our export invoices as we raise them and the collections service means customers deal with us in their language and can pay funds into their local bank. It makes it easy for our customers to buy from us and that's really important when operating in competitive markets.
"Export Factoring is in my opinion the most effective solution to funding overseas trade. We have a flexible supply of funds and more time to invest in growing our business. Our latest venture just wouldn't have been possible without this invaluable service."
