Low-fee supply chain finance secured worth millions
Significant savings in transfer fees
Accurate budgeting tools to assist finance team
Case Study
An all-round financial solution for a UK-based drone importer
Overview
A UK-based drone importer, supplying advanced drone equipment to businesses across the UK and Europe, needed a robust financial solution to streamline its operations. The company required a flexible system to receive payments in GBP, Euro, and USD from its wide-ranging client base, as well as support for managing its foreign exchange (FX) risk and increasing its purchasing power to scale operations.
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We worked closely with the client to implement a comprehensive financial strategy that addressed their payment, FX, and funding needs.
Challenge
The client’s growing demand across multiple markets required efficient payment collection methods in multiple currencies. They also needed to manage FX risk when purchasing drone equipment from their supplier in China, as exchange rate fluctuations posed a threat to their profit margins. Furthermore, the client needed access to funding to boost inventory, enabling them to meet increasing customer demand and take advantage of bulk ordering opportunities.
Solution
We provided the client with a tailored package of financial solutions, including:
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Payments
Multi-Currency Collection Accounts: To streamline payments, we implemented multi-currency collection accounts, allowing the client to receive payments in GBP, Euro, and USD without the hassle of converting funds. This solution simplified the payment process for their clients and reduced administrative burdens, enabling the company to operate more efficiently across multiple markets.
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FX Risk Management
Forward Contracts: The client faced significant FX risk when purchasing drone equipment from China. To mitigate this risk, we offered forward contracts, enabling them to lock in favourable exchange rates in advance. This solution protected the company from currency volatility, helping them secure stable pricing and protect their profit margins.
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Funding
Supply Chain Finance: To further support the company’s growth, we introduced supply chain finance. This funding solution allowed the client to purchase more inventory than usual, giving them the flexibility to scale operations and meet growing demand. We secured a competitive funding arrangement at a monthly fee of just 0.8%, which enabled the company to deliver over seven figures in product orders.
Drone Equipment Supplier
Based in the UK, our client imports state-of-the-art drones from China, supplying businesses across the UK and Europe with advanced drone equipment. With a mission to inspire innovation and efficiency, they focus on providing high-quality, cutting-edge technology to meet the evolving needs of their clients.
Industry
Aviation & Airlines
Subsector
Drones
Client Type
Small Business
How we helped
Outcome
The combination of multi-currency collection accounts, FX forward contracts, and supply chain finance transformed the company’s financial operations. By streamlining payment collection, protecting margins, and securing the funding needed to scale, the client was able to grow their business more efficiently and profitably.
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With these financial tools in place, the company is now well-positioned to continue expanding its market share across the UK and Europe, while maintaining strong relationships with suppliers and clients alike.
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Key Solutions Delivered:
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Payments: Multi-currency collection accounts
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FX Risk Management: Forward contracts
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Funding: Supply chain finance at 0.8% monthly fee
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This comprehensive financial strategy not only saved the company money but also provided them with the flexibility to grow at pace with demand.