Improve Borrowing Capacity

Financing Examples:

Corrugated box equipment manufacturer located in New Jersey was having difficulty financing export sales because lender excluded all foreign receivables from borrowing base.  Credit insurance was the solution. The lender agreed to include foreign A/R in the borrowing base because the risk of non-payment / collections was reduced. The result was increased availability which allowed the borrower to continue to grow export sales.

Electromagnetic coating company located in Georgia need additional working capital to support domestic sales growth.  The financing need was driven by longer terms of sale being offered to their larger customers. Their lender agreed to increase the advance rate on receivables if insured.

Export sales: $3,000,000

Average export A/R: $575,000

85% advance rate: $460,000 additional working capital

Annual policy cost: $12,000

Total company sales: $20,000,000 

Average domestic A/R:  $2,500,000

85% advance rate: $2,000,000

Annual policy cost: $23,000

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Tel. 484-595-0100 Fax. 484-582-0111

P.O. Box 3665, Tyger Valley, Cape Town 7536 South Africa
Tel. 072-308-1112

Specializing in Trade Credit Insurance, Political Risk Insurance and Capital Solutions