Fit for all most purposes (Published Febuary 2007)
(or why trade
finance is always in fashion!)
You probably know us for "trade
finance" in complex circumstances.
That would suggest that we fund risky
scenarios, but we know that apparently
simple traded transactions can carry more
risk than our complex clients.
Our complex clients are often
manufacturers and there must be additional
risk buying goods for manufacture before sale.
But such businesses are often well established
and managed by battle-hardened, experienced
people. Some may have failed and restarted
which is why they need us, but we have the
skills and documentation to meet their needs.
Perhaps our best clients are those who are both battle-hardened and
only require us for simple trade finance, that is the simple purchase of
presold goods. One example is Marcelane, www.marcelane.com
Mark and Elaine Phillips have years of experience in ladies fashion
garments, and they have survived many expensive hazards. They have
had troubles with supply on time, and two distributors failed. Their
former trade finance company also failed and we have picked up the
pieces. Mark and Elaine and their company have survived all this, for
which they have both our admiration and our facility to replace their
former trade financer. Both the product and the people are obviously
"fit for purpose".
"Some may have failed and restarted which is why they need us, but we have the skills and documentation to meet their needs"
But neither their job or our job is simple. Each season is designed,
sampled (partly with our funding), and then the customers chose
what designs they want. Then they
supervise the production from cloth to
perfect garment, sort out export licences
and quotas, and meet delivery dates. From
"rags to riches" has many normal hazards to
overcome without the additional trauma that
Mark and Elaine have suffered and survived.
Most of their customers are small retailers
in the UK, Spain, Greece and elsewhere. UK
debts are assigned to an independent factoring
company who advance availability to us.
Overseas debts are paid to us.
There are three suppliers in India and
China. To implement this quickly we had to
secure two of them by letter of credit, as offered by our former competitor.
Next season we plan to commit by supplier undertaking and thus obtain
supplier credit. This will cut Marcelane's costs
Marcelane's first collection was in 2003 at which time they were
as slender as some of their models, say Size Zero! They are now a
substantial business and we hope to support their rapid growth from
here, hazard free.
Perhaps you do not think of us for garments and simple presold
goods. We have very many such clients; in some cases not all of the
goods are presold. We are fit for most purposes! In our 15 years we have
built a very strong operations team and thus, as we have claimed...
...the difficult we do immediately; the impossible takes a little longer...
Written by David Ross Director
Download
the Article 'Fit for most purposes' at www.fairfaxgerrard.co.uk/docs/BusMon 0207 Fit for most purposes.pdf
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