Ebury Helps Toy Companies Overcome Finance Challenge
11/Mar/2014 • International Trade•
Ebury Trade Finance offers a different approach to supplier finance, specifically aimed at alleviating some of the main challenges which toy companies face
Ebury is a London based financial services company specifically designed to empower small and medium-sized businesses that want to transact and trade internationally. In conjunction with its existing currency-based products, Ebury is now financing international trade through a new Trade Finance solution.
Roman Itskovich, Head of Trade Finance, explained: “We have put together a specific programme targeting some of the challenges faced by toy companies. Our approach is to come into the supply chain at a much earlier stage, benefiting both the UK buyer and their supplier.
“We’re a trade finance specialist, not a bank. We’ve raised our own money to lend on an unsecured borrowing basis, so there is no conflict with a buyer’s existing bank or finance relationships. We’re looking to lend to SMEs with a minimum turnover of £1m a year, which have established relationships with their vendors. We can provide a 120-day trade credit limit up to £1,000,000, allowing time for the goods that they have purchased abroad to be imported and paid for by their customer before they need to repay us. This will deliver significant cash flow and working capital benefits. This may allow the UK buyers to negotiate preferential prices and terms from their supplier, as it effectively makes them a cash buyer.”
There are major advantages for the supplier too. The facility will work wherever in the world the supplier is based. When a transaction is confirmed and the products supplied, the supplier will receive immediate payment for its goods or services, bringing greater trust and efficiency to the partnership. Payments are fast and transparent, removing exchange rate fluctuation risk and enabling suppliers to be paid in their preferred currency.
The Trade Finance solution is a simple five-step process:
Step 1 – The buyer registers with Ebury and establishes a credit line.
Step 2 – The buyer and supplier agree transaction details and the manufacturer registers with Ebury.
Step 3 – The buyer accepts the goods.
Step 4 – Ebury pays 100% of the invoice value to the supplier.
Step 5 – The buyer settles the invoice with Ebury up to 120 days later.
Published and recognised by:
Toy World – the business magazine with a passion for toys.
Apply now for Ebury Trade Finance