Financing Growth
for Entrepreneurs

 

 

Specialty Oils :

A small company dealing in specialty oils and selling to prime companies in India came to Gateway Trade Finance for letters of credit to help them offset the price risk involved with selling a price sensitive product overseas.

The letter of credit allowed the foreign buyer to have deferred payment terms, while our client was paid based upon the presentation of simple documents that demonstrated that goods had been shipped.

Salad Dressing

Gateway Trade Finance was approached by a supplier of specialty salad dressings. The company was small but growing, selling to natural foods, specialty and major supermarket chains. The company received a large order from a new major chain to produce an existing dressing with their own label. The company was very underfinanced and not able to pay the supplier/co-packer to produce the requested dressing. Fortunately the principal in the client firm was very experienced in the food industry and had firm orders from a strong customer.

Gateway opened domestic letters of credit to the company's co-packer. The principal of the company was on-site at the co-packer’s facility to assure both the quality of the dressing and the packaging process. The dressing was then palletized to the customer's specifications and shipped directly from the supplier to the customer. As the client firm had no factor in place, invoices were sent to Gateway, who in turn stamped them with instructions as to where payment was to be sent, the customer thus paying Gateway directly.

Without Gateway, the client would not have been able to obtain the new business it had worked so hard for. Using Gateway financing allowed the client firm to meet the customer’s order requirements from all aspects. This resulted in repeat business from the customer, and not only in the part of the country that placed the initial order, but in other districts as well.