Letters of credit vs Bank guarantees The Definition and the Key differences

A Bank guarantee or a letter of credit are very similar. Both are essentially the assurance that borrowers will repay a debt to third parties irrespective of their financial circumstances.

If borrowers are unable to pay, they must still repay their lenders. Both sources of finance facilitate trade by backing the borrower financially. They significantly reduce transaction risks and speed up the trade process.

However, there are underlying differences between the two. Letters of credit are widely used in global transactions. This is due to the variation of laws in different countries, especially when it is difficult for both parties to meet in person.

Letters of credit are more widely used in international trade. A bank guarantee can be a better option in real estate contracts and infrastructure projects.

Bank Guarantee

A lending institution makes a promise that a bank will pay on behalf of a debtor if they are unable to pay. A bank guarantee generally imposes more contractual obligations than a letter of credit.

A Bank guarantee fundamentally protects both parties from credit risk. This is the most important factor in the trade.

For example, a construction company enters a contract with a cement supplier. They go to the bank for the contractual agreement. Both parties must prove their financial capabilities to meet the terms and conditions of the contract, which are primarily financial.

If the supplier fails to deliver the cement on time, the construction company notifies the bank. The bank will then pay the company on behalf of a supplier as part of the bank guarantee.

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Types of bank guarantee

Bank guarantees are similar to other financial instruments. There are two types:

• Direct bank guarantee – Issued by banks for domestic and international businesses.
• Indirect bank guarantee – Issued for government projects or those related to a public entity.

Other types of bank guarantees:

• Shipping guarantee: Given to the carrier of a shipment arriving before documents are received.
• Loan guarantee: A financial obligation of the bank to pay the money if a borrower defaults.
• Advance payment guarantee: This guarantees the payment in advance even if a seller does not supply goods within a specified time.
• Confirmed payment guarantee: This guarantee is irreversible. It compels the bank to pay to a beneficiary within a certain defined date.

Letters of credit

A Letter of credit [LC] is a financial instrument that proves creditworthiness. It is also referred to as documentary credit. An LC is often confused with bank credit as they both share certain common characteristics.

A Letter of credit guarantees payment to a seller from a buyer within a specified time. If a buyer fails to pay, the bank will pay on his behalf the full amount to a seller.

However, they have pre-defined terms and conditions. Once these criteria are met, the bank will release the funds to the seller. Let’s understand it with a simple example:

A UK-based wholesaler orders goods from a French company. Both parties have no previous business relationship. There is a risk of non-payment as the wholesaler has inadequate information about a new company with which he wants to trade. They then request a letter of credit to ensure the payment.

The buyer applies for a letter of credit to a bank where they have sufficient funds for a line of credit. The bank then issues a letter of credit on behalf of the buyer. The LC guarantees the payment, provided certain conditions met by the seller.

The seller has specific criteria to comply with also, which are specified in the LC. Furthermore, they must meet all the terms and conditions with documented evidence. The bank will transfer the funds only after all terms and conditions are met.

An LC facilitates international trade with secure transactions. It accelerates trade and creates new opportunities for businesses.

Similar to a bank guarantee, there are various types of letters of credit:

• An irrevocable letter of credit – The buyer is obliged to pay the seller for the goods.
• A confirmed letter of credit – Guarantee from the second bank. It issues the letter in case of questionable credit from the first bank. It basically confirms the payment if the issuing bank defaults on the payment
• An import letter of credit – Enables importers with finance to pay in advance
• An export letter of credit – Obliges Obligation to the buyer’s bank to make the payment given all terms and conditions are met
• A revolving letter of credit – Allows both parties to withdraw from the contract within a specific period

Underlying differences

Both reduce payment risks, secure transactions, and work as a catalyst to increase trade.

Letter of credit Vs Bank guarantee – comparison

Final words:

A Letter of Credit is widely used in international trade. They are becoming increasingly popular in domestic business as well. It is owing to the assurance of payment.

The seller must be paid. The buyer must pay on time. A letter of credit serves both purposes. A bank guarantee is usually preferred to fulfill certain obligations. It helps meet requirements and assures payment to the beneficiary.

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Ship Chartering Business: 7 Tips to Excel in Your Business

When you are working in ship chartering, you need to build a profile that can help you get positive results. You need to be strategic in what you do and need to have a perfect plan to execute things. The logistical operations in international trade are very complex, and there is no scope for errors. In the case of international trade, even a difference of few cents in the price of a commodity can bring around a great hike in the final price.

There are a lot of challenges in the vessel chartering business apart from the huge profits, and here in this post, we will be looking at tips that you can follow to excel in what you do.

1. Verify the credibility of shipowner

Just like in any other business getting into a commercial transaction, here too you need to start by evaluating the history of professional expertise of the shipowner. This kind of work will let you know who will provide you with the ships which can be chartered for work.

The evaluation process will let you know whether there have been some unforeseen incidents experienced on the side of the shipowner in the past in terms of not performing a load or failing to stay put with the set contract. You will also know whether the ship you are planning to charter has been arrested previously or not. The credibility of the shipowner means a lot in the business, and this research work will let you confirm the same.

The ship charterer should also invest in some time to check all the information you have gathered so far with the signed charter party. This is needed because the risks associated with a time charter party is quite low compared to a voyage charter.

2. Keep discretion at the centre of what you do

It is smart to work low profile especially when you are working in a very competitive marketplace. Things are not much different in the case of Ship chartering. The moment a charterer starts looking for partners in the market, it clearly gives out a hint to competitors that there is a chance of better business opportunities around. It is important to understand that international commerce operations are very complex and millions of dollars can be made through single cargo transportation. This means there is a potential business opportunity in every negotiation for key market players.

3. Be clear about shipping contract type

When we consider the contract, you need to keep in mind that seasonalities in the international market are directly connected with custom duties and impact prices. Good opportunities will come around during a certain period of the year and so the charterer needs to be ready to grab anything that comes in his or her way.

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4. Be aware of all the shippers

Each shipper has its own loading terminal and they have their set of rules and terminology for the same. Moreover, it would be good on the side of the charterer to know as much as the operational method of the port whether they plan to load or unload the cargo. Again, you need to pay more attention to dates when looking into seasonalities as it plays a key role in calculating the amount for freight shipping through the sea.

You also need to realize that it is an excellent charterer who will know to have a back to back contract from a charter party. Something else you need to look into apart from choosing the shippers is that you need to have a bunch of partners who have the technical expertise and good reputation in the market. Moreover, you will be able to ensure that the operation at every port will be carried out properly by the support and guarantee of brokers, shipping agents, and other related professionals.

5. Look for opportunities in other charters

Just like any other transport, a charter party works in the same manner too. The shipowner is paid by the charterer who then uses the ship to transport cargo from one destination to another. So just like in the case of urban mobility principle remains the same.

Say, for example, if you choose to book Uber for a single passenger ride then it will be expensive compared to its ‘Pool’ option where different passengers will be sharing the ride.

Now when we talk about chartering for international trade, the same logic stands. The shipping costs can be reduced to a greater extend by opting for the pool option for charterers. Moreover, when you share the expenses with someone who already has signed the contract, you will be in a better position in case any negotiations are held later.

6. Work on negotiation at different levels

In the agricultural and commodity market, the freight operations mainly involve transportation of either grains or liquid from one destination to another and this can be many nautical miles away.

Such kind of transportation is carried out after tenders are passed through a bidding process that is carried out first in the international market for the same. For the ones who are ready to get through the risks related to international logistics, huge enterprises or government offices will offer incentives and this can be in the form of some subsidies.

Apart from what is offered for the exporter, the charterer should look for more. The charterer should come up with a cost grid by considering taxes, logistics as well as the value of the commodity which is transported that too considering the different countries where they are moved. This will guarantee the business with profitability and ensure smoother and faster operations.

At this point, it is worth saying that you should work with only professionals and maintain discretion in what you do. This way they can avoid checking out prices and hinting shipowners to raise their prices.

7. Stay in tune with international markets

You need to always stay on the edge when you are negotiating in the international market. It is important for charterers who are dealing with bulk cargo or the ones carrying liquid, to know about the market. It is important for the charterers to be aware of the geopolitical movements and stay updated with it always. It is they who will be dealing with the market changes that will be brought to effect by the government authorities. Such a step will let you keep in the loop with the factors that affect the flow of transport on international waters.

The conditions and prices of sea transport are influenced by many factors apart from people. It can be some climatic conditions like Tsunamis, hurricanes, floods, droughts, etc. Such factors can either make transportation less or more risky. Just like in any other profession, knowledge and expertise are needed in ship chartering and so charterers need to keep themselves improving and learning continuously.

Final thoughts

Ship chartering can be a successful line of the profession when done right. You need to be good at grabbing opportunities that come your way and make decent profits out of them apart from following the tips mentioned above. The majority of the decisions are dependent on the funds you have in hand for your business and this is where ship charterers need a helping hand. Trade Credebt® can help you overcome this hurdle by offering you the needed financial help to fund your business needs.

Top Import Export Finance Options For Your Business

International trading can be turned into a profitable business but then it requires a lot of money as investments. You will have to put in the effort to research your market well and identify those opportunities which can work in your favor. Again, research work needs a good team and you should have some money ready to carry out the tasks. Moreover, if you are already in your import-export business you will start making from the sales and this will provide you the liquid money to keep the chain moving. However, it can be a slow process and the right export/import finance can help you power up your business.

There are a few ways in which you can secure funds for your import-export business and they are:

Secure a loan through your inventory

You will be able to find a solution to your financial issues by having an inventory. You can start by evaluating the goods present in your inventory to know its value and get a loan based on that. This is one of the best ways to secure money for your business through external financing without having to actually sell anything. Moreover, you can achieve this in many ways. You can here make use of field warehousing, floor planning, or blanket inventory lien. In short, based on your business needs, you can choose the kind of inventory financing types that suits you.

You need to look into a few things when you plan to go for inventory financing. Before you can actually use inventory for your business benefit, you need to have a good credit record among other things. After that, you need to check your inventory and make a list of the products. You need to list out the objective value of each product then. When listing out their values you need to be clear that you should not put up the price for which you plan to sell it rather, it should be its worth. Once done that, you need to come up with a clear plan about how you are going to use the money you get this way and how you are going to pay it back.

You should only go for inventory financing if you are doing well in terms of sales and you can learn that from your previous sells and marketing analysis. In case you are not doing so well then it would not be the right solution for you. If your inventory does not have the potential to develop such investment then the company or person who is planning to fund you will not be much excited to invest money.

Get your manufacturer on board

You will come across many manufacturers when you are in an import export finance business. The foremost thing you will be doing is to find the manufacturer who can get you quality products at the best price. If you are able to pay for the products you bought from the manufacturer then you have no financial issues at all. In the other scenario, you will have to negotiate a deal with the manufacturer that can work for both parties well.

Some of the manufacturers will let you get great discounts when you are ordering in bulk. This will save you a lot of money and keep away from the financial crisis. Some manufacturers may even provide you products without making the payment first just by signing up a contract between both parties. Such kind of arrangement comes with some risks too. You will have to pay the manufacturer within the date mentioned in the contract. If you fail to make the payment on time then it can lead to legal issues.

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Manufacturers have no plan to take risks for you without any specific reason. So it is important that you should come up with a plan that is in their benefit too. You should assure them that you will pay them at the earliest and they will not lose money or goods by trusting and investing in your business. You will have to put in maximum effort for the first time, rest, the experience for both parties will be smoother.

Opt for a private company to get commercial finance

Contacting a private company is another way of securing funds for your business. Finding funds can be a real issue for business and private companies seem to be an easy solution when compared with banks. You should be specific about the clauses when forming the contract. You can even involve a lawyer when forming the contract to make sure that it is fair and that can be done by considering the finances involved. You will have to pay a certain amount based on the interest of the loan and you will get a set timeline to clear off the debt. The details of the loan and its payment will be discussed between both parties during the negotiation period.

Before you apply for such a loan you need to analyze your business first so as to know whether you will be able to pay back the loan on time or not. You also need to know the import opportunities and be sure that you have them in your control for a long time. So once you know that you can pay off the debt without putting your business at risk, you can choose to go with this option.

Make use of different financing programs of government

Companies of import-export companies get to enjoy some level of support from the state in many countries. You will be able to access such funds with little research and good luck. It is not that easy to get access to such government funds if you don’t have the right team or if your business is not well established. Such kind of state programs is available for a limited period and a long list of businesses are always there to access them.

You will have to represent your business and its mission through a well-established plan and it should be done for a year or so. When doing that, you need to describe your inventory well along with the different export opportunities you have. You need to reason everything properly to let them know why you need funds. The government will go through your plan, analyze it, and then based on that will respond to you.

If your company develops something that is beneficial for the country or the state or something that can improve the economy of your country then chances are higher that you will be able to get state finances for your use.

If you have just started your business and have no much idea of international commerce then there is no need to access government funds. On the contrary, if you are in this business for some time and very well know the opportunities that you can gain then there is nothing wrong with choosing this option. In case you fail to secure the funds then don’t get disappointed. Keep trying to get it the next time.

Approach bank for a loan

When it comes to securing funds, banks have proved to be a reliable partner for many, for years. However, banks follow strict regulations and this makes it tough for businesses to get funds. Moreover, banks will look into your financial potential and the condition of your import-export business, and your capability to pay back the loan. Chances are there that banks may not sanction your loan or may offer you a different amount. The sanctioned loan comes with a set interest and fixed EMI schedule. You are supposed to make regular payments to avoid any issues in the future.

When you are taking a loan from the bank, you have very little or no chances to make negotiations at your end. Banks follow strict norms and it is not much you can do in that area. Unless and until you are clear that your business has a great future, it would not be wise to take a loan from the bank as it can prove to be fatal for your business in the otherwise scenario. If you are a beginner in your business, then it would be wise to avoid banking finance. If you want to take a loan from the bank better you should seek the help of an expert for the job.

If you are fully aware of the different financial guidelines followed by different banks in your country then this can make big difference. You should also think about the means through which you plan to secure the loan as the bank will ask for some warranty to make sure they can recover the money if you fail to pay back the loan.

Before you go with the plan of securing a loan from the bank you need to look into the possibilities of getting the best deal for your business loan. Before submitting your loan papers, you can ask an expert to look into it first. He or she will analyze your papers first and will let you know about any hidden risks of showing some documents in the process. You need to be clear that once you sign the contract then there is no way that you can get rid of it. It has to be respected by both parties at any cost.

Final thoughts

Building an import-export business comes with many challenges and securing funds is prime one of them. Securing enough funds is important to keep the business moving before you start to get profits from your sells. Finding the right partner who can fund your business is the foremost priority. If that works well, then the rest can be dealt with too. So if you are looking for ways to finance your business, the options mentioned above can help you with the task.

What Is Structured Trade Finance And Why To Use It?

Structured trade finance is an alternative lending option, and it is a type of debt finance followed by many businesses. It has been used for cross-border trade with a proper structure in place. There are more things to know about it, and it has been explained below:

What is structured trade finance?

Structured trade finance is a kind of debt finance that is followed by alternative finance solutions. Such kind of finance method is generally used in the case of cross-border transactions and developing countries. This kind of Trade Finance is used in place of conventional banking in order to promote bi-lateral trade relationships with high-value transactions using non-standard security measures.

The structured trade finance method is used by many trading houses, organizations, banks, etc. STF or Structured trade Finance is a complex type of finance and is usually used for commodity trading of large quantities or products of high-value. Such kind of finance is agreed between two parties in a bilateral trading relationship by forming a proper structure.

The commodity sector majorly follows this kind of trade finance and it is mainly used by producers, processors, traders, and consumers. However, not all are provided with the same kind of package, it varies based on the need. Say, for example, you will find here pre-export finance, warehouse financing, borrowing base financing, etc. Now the parties taking up the money are self-liquidating. This means that they will get their money back once the products are exported or sold out. So in such cases, money is lent based on the set business trade cycle.

The structured trade finance enjoys the support of limited recourse trade finance ways and focuses mainly on product flows cross-border. If we look at the whole structure, you will understand that it comes with a good enhanced security mechanism and this helps to support borrowers in a good sense.

Why go for structured trade finance options?

The main idea behind going for structured trade finance solutions is to get rid of all the risks that come with trading in a specific country or different jurisdictions. Such structures in the transaction help to have better resilience to the trade business. It even helps with diversifying the funds, lengthening the payment times, enhancing the ability of the clients to increase the size of their facilities, and strategic procurement.

One of the reasons why structured trade finance is found to be attractive is that compared to the loan, the capability of the borrower who is part of the transaction is not much looked at. Here the main focus remains on the underlying business cash flows and the structure.

What makes structured trade finance important?

In a general scenario, structured trade finance is used for different kinds of lending. In this kind of lending, financings are structured in a different manner for the business with the aim of maintaining an independent structure that can work on its own. In order to make this work, different mechanisms are put together and this includes the role of insurance and a collateral manager and an escrow agent.

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In any relationship, agreement plays a key role. Such agreements must be governed by underlying covenants and by clear contracts. It needs to have clearer governing law clauses set, roles of the parties must be defined, and clauses must be enforceable. Such agreements will mainly focus on security documents and here priorities are clearly set in terms of asset charges, charges on the property, debentures, SBLCs, and guarantees.

Different types of structured trade finance

Structured trade finance is divided into a few types namely:

Final thoughts

The role of such trade finance is said to elevate in the coming years. Such trade options were said to be easy to liquidate and relatively safe in the times when there was very much dip in the trading activities. Trade finance products have proved beneficial for emerging economies and it will keep doing the same in the future too.

Top Shipping Finance Banks Backing Shipping Industry

Shipping finance is said to be playing a crucial role in covering the financial aspects of the maritime industry. It involves a lot of activities like buying ships, making upgrades in its body, or even getting some electronic parts repaired. Financial help is even opted for paying insurance. Just like any other business domain, the shipping industry also needs external financial help to keep floating! This is where shipping finance banks play a very critical role.

There are times when it becomes difficult for shipping companies to secure loans from traditional banks. It can happen due to many reasons! This is where alternative finance options come into play.

When we talk about shipping finance banks, there are some popular names in the market that can be approached for such finance needs. Here in this article, we will be talking about the same.

Michael Parker

Michael Parker is working with Citigroup for a long time now and is into ship finance in particular. Citigroup is one of its kinds of banks that has been heavily lending money in the shipping sector. Mr.Parker who earlier used to be the global head of shipping in the bank got promoted to become the chairman of the shipping and logistics division of the bank. His earlier post has now been occupied by Shreyas Chipalkatty, who is again a man of great capabilities!In his new role, Mr.Parker will be more concentrating on the environmental aspects before lending money to shipping companies. This does not come as a surprise as Mr.Parker has been the main mind behind the Poseidon Principles that has been accepted by 11 banks in the month of June to decide the lending criteria. The whole thing is about considering the carbon emission in mind when lending money to shipping companies.

Andreas Povlsen

Andreas Povlsen has worked tirelessly to turn Breakwater Capital into a known brand by building it from scratch. Mr.Povlsen started working on this London-based bank in 2011. Over the years he has been able to build some amazing relationships with ship-owners who were once clients of traditional shipping bankers. He has the knowledge to think above short-term benefits coming from private equity.Breakwater has made some of the best deals in the market and one of them which everyone knows about is of Hartmann Offshore and United Offshore Support under the banner of UOS. It worked well in the loan finance part of Global Ship Lease boxship purchases and in industry related to anchor-handling tug support.

Lee Donggull

Lee Donggull works with Korea Development Bank and 2019 has proved to be a milestone in his career. During his three-year term with the bank, he made a major leap in the second year by signing the Won2trn merger deal for Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries.The deal is worth $1.7 billion but it is still not done yet, to be specific. Still, it means a lot for the bank and its chairman, as they have already invested a lot in the shipping finance sector. The deal is still facing trouble in the context of gaining regulatory approvals from different jurisdictions.

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Mr.Lee is now trying to boost the economy by concentrating on other important aspects like streamlining the operations of two policy banks in Seoul. Moreover, at the beginning of 2019, Mr. Lee even suggested for the merger of the Export-Import Bank of Korea with KDB for improving the efficiency of the state budget.

Kristin Holth

Not many women have their names on this list. Kristin Holth from DNB still claims to be one of the leading women in ship finance even though its work in this field has fallen from $21bn to just $6.9bn in the last three-four years. Ms. Holth made one of the major decisions in her career last year just by deciding to not follow the Poseidon Principles which mainly focuses on environmental guidelines.Ms. Holth completed her graduation from the Norwegian School of Management and earned MSc in Business. She even learned international finance during her college days. She joined her current employer in 1984 and is working with them since then.

Andy Dacy

Andrian Dacy works at JP Morgan as their head of global transportation. The company is still taking equity positions in different shipping companies. He has immense knowledge in this field and this has helped him make wise investments in the banking space. Mr. Dacy has been an active participant in the shipping conference circuit and there he has pushed his interest in environmental protection when it comes to approving the loan applications of shipping companies.He stresses more on gaining increased importance for social, environmental, and governance targets.

Philipp Wunschmann

Berenberg is one of those European banks which have started to invest in the shipping industry lately. It has been lending good and getting a decent yield back. Philipp Wunschmann is working as the head of the shipping department Berenberg Bank. Earlier he had worked with Deutsche Schiffsbank unit of Commerzbank. He has carried out some other banking jobs like being the managing director of Shipping interests at Erck Rickmers.

Zhao Jiong

Over the years, Zhao Jiong has ensured to maintain a low-profile and is rarely seen speaking on public occasions. Still, he has managed to do his part and deliver remarkable expansion in shipping finance at Bocomm Financial Leasing which is actually a subsidiary of China’s Bank of Communications.The company is the largest shipping lessor in China and this excludes offshore businesses. In the year 2019, many deals were made by the company and out of which one of $750m orders with 10 of the largest ore carriers that are present over the yards of China.

Final thoughts

So here we are with some of the most influential people in the world who have proved their presence in the shipping finance industry. They have been playing a great role in offering ship finance and thus helping the shipping industry to grow and flourish. If you are looking for some alternative finance options then choosing Trade Credebt® can be the best bet. We can offer you excellent shipping finance solutions based on your business needs.

Keeping Profits Hot

Catering HQ provide quality ice cream, milkshake, juice and coffee machines for supermarkets, hotels and food and drink outlets. Over the past nine years, business owner Gene Curry has built a nationwide reputation as one of the leading companies in this sector. With a focus on delivering high profit margins to each client, adding a machine from genecurry.com can help to satisfy customer needs and boost your profits considerably. Gene has used Convertibill® services to help finance the growth of his business into the market leader it is today

Keeping Customers Cool And Profits Hot

As a business owner, you aim to continually grow profits while keeping your customers happy. Catering HQ specialise in boosting profit margins and customer satisfaction for clients, every business owners dream. Their wide range of machinery and food service solutions cater to a diverse customer base. The addition of a machine from Catering HQ can add a fresh aspect to your business or add value to the service you already provide. From speaking with owner Gene Curry, you can see he takes great pride in the range and service that he provides through Catering HQ and genecurry.com. “We offer service on all of this equipment to ensure the businesses that we supply can continue to operate at peak levels, ensuring them maximum profit. When we deliver and supply these machines, we also offer full staff training on premises on the use of these machines”.

Gene has years of experience in the industry, and started his business after he identified a gap in the market that the competitors were not exploiting. The rest is history, and today Gene and his team are leading the way in delivering quality machines and increased profit margins to outlets. “We have been trading since 2011 and the reason for starting the company was seeing a brand of ice cream combi machines that none of the opposition had perfected named “Nissei”. They had approached me through my vast experience in this field and asked if I would be interested in looking after the agency. With the Nissei agency, our business has grown in the fast food, hotel, restaurant and major supermarket franchises”. Aside from supplying machines, Gene and his team can also offer invaluable advice on developing new ideas or refreshing existing concepts in your outlet. Convertibill®’s role is to finance a business’ potential so that business owners like Gene can focus on running and growing his company.

Shake Up Your Business

A closer look across some of the many machines on offer would have business owners licking their lips. Affordable payment plans coupled with detailed profit margins shows clearly the value a machine from Catering HQ can add.

The Nissei NA3348 is the perfect combi soft-serve and thick milkshake machine for locations with high-volume sales and high demand for ice cream and thick milkshakes. This foot-operated machine has two separate taps for ease of use. If you select the optional Twister paddle, you can amaze your customers with nearly endless variations on soft-serve ice cream with nuts, toppings and even fresh fruit. Nissei soft serve machines are known for their high capacity, compact size, quiet operation, low maintenance costs, long lifespan and ease of use. What is most impressive about these machines however, is the profit margin they deliver on each serving. Each ice cream cone produced comes in at an average cost of approximately EUR 0.35. With a recommended sale price of EUR 2.20, that leaves profit on each cone as approximately EUR 1.65. Picture a busy seaside town during the summer months, you don’t need a vivid imagination to see the benefit such a machine will bring.

Futurmat F2 – Ottima – This highly efficient machine can produce cappuccino, latte, espresso, americano, cafe mocha, drinking chocolate, tea and soups. Easily transportable and punching far above its weight in terms of quality, the Futurmat F2 – Ottima is an extremely popular option. Available to lease for EUR 37.00 per week (including grinder, knocking box and 20kg of coffee product), this stylish addition is guaranteed to pay for itself and more. The machines are manufactured in Barcelona, Spain by Quality Espresso S.A. who have more than 50 years design and manufacturing experience. Brands manufactured by Quality Espresso are the benchmarks used by food service professionals when considering commercial espresso and cappuccino coffee machines.

The Merlin Master Supreme milkshake machine has an output of 200 x 330 ml portions per hour. At full capacity, this machine will generate an impressive profit of approximately EUR 390.00 per hour. Available to lease from EUR 295.00 per month, the value in this machine for busy fast food outlets is clear to see. This machine serves thick, delicious milkshakes and is also capable of producing Huzzle, which is a new concept that will allow your business to compete with the larger chain takeaways.

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The Zummo Z40 Nature is the perfect juicer to attend to the needs of mass catering and large surfaces. Its capacity to extract large amounts of juice in a short period of time makes it ideal for busy supermarkets, hotels or restaurants. With changing habits and a move towards more healthy alternatives, this machine is sure to be an extremely popular fixture in any outlet. Completely natural product and self-service ability allows customers to take control of their own product.

With an extensive range of machines available, Gene Curry is sure to have the right option for your business’ needs. Your customers will thank you and your profit margins will rise with the addition of one of these superb machines.

Becoming A Market Leader

Like any business owner, Gene has faced a number of challenges in growing his business to the level it is today. Speaking about some barriers he has faced, he named a difficulty in finding the right finance partner willing to understand his business plan. “One of the barriers of growth was the finance houses taking an understanding to our business and fully conceptualising what we were trying to achieve. This can slow down the process of turning a lead into a piece of equipment that is sold and delivered to the end customer”.

Many lenders will not take the time to listen, but Convertibill® are different. We can do everything a bank does, but differently, and we will trade where a bank won’t lend. In Convertibill®, Gene found the perfect finance partner to achieve the lofty goals he set. “Convertibill has an understanding of our business. We had a meeting with the Senior Administrator of Convertibill in Dublin, he understood the business and could see the potential of us working together”. Our Credebt® facilities often prove the ideal solution to our customers trade.

Ambitious entrepreneurs like Gene are a perfect fit for the Convertibill® model. It is clear from speaking with Gene that he has big goals for the coming year, and in Convertibill® he has a finance partner that will back him every step of the way. “We plan to increase the sales of milkshake machines and combi machines to fast food outlets and expand to the hot food business specialising in chicken rotisseries, pressure cookers as well as hot food and refrigeration counters to the supermarkets and delicatessens”.

Finding The Right Partner

Convertibill® can help your business to grow, where often banks and other lenders will not. We will work with you to form a flexible repayment plan to suit your needs. Our function is to facilitate growth and to provide the support you need to achieve your goals, no matter what they are. To start a conversation with a member of our dedicated team, click here. Our team will walk you through the process, and provide straightforward solutions to your trade.

We are proud to work with ambitious Irish entrepreneurs such as Gene Curry. If you have a winning idea, or simply need help to take your business to the next level, start a commitment free conversation with us today. Let’s grow together.

A Family Affair

White & Green are a family run Irish company, specialising in luxury bedding. Run by Sari Winckworth and her daughters Danielle and Rebecca, they have a wealth of experience in interior design, fashion and business management and development. A focus on Fairtrade suppliers and the use of organic cotton gives White and Green products a mark of quality that sets them apart in the industry.

Setting New Standards

In 2015, Sari Winckworth along with her daughters Danielle and Rebecca founded White & Green. Frustrated by their customer experience and the poor quality of many brands on the market, they decided to make a change. With Sari’s expertise as an interior designer, Danielle’s involvement in the fashion industry and Rebecca’s knowledge of business development, they had a recipe for success. This dynamic team came across Convertibill®, and through the use of our Credebt® facilities were able to take their business to the next level. Our role is to finance a business’ potential. With an ambitious team such as White & Green, that potential is endless.

Sari, Danielle and Rebecca identified a need for a luxury brand of bedding that would not compromise on quality while remaining affordable. Unwilling to take shortcuts, they spent a year researching the industry before starting their business. White & Green now provide luxury organic and Fairtrade bed sheets, duvet covers, bedspreads, organic towels, dressing gowns and organic washing detergent.

The family dynamic is a unique aspect to White & Green and it is clear that each member brings a unique skill set. Speaking about how the relationship works, it is clear that Sari and her daughters each inspired a different aspect of the business. Coming together, they work as a well balanced team. “Rebecca saw the need to promote the use of organic cotton as a really important step towards helping subsistence farmers create a viable product that would sustain their families and improve the standard of living of their entire family. Danielle was interested in developing products that were timeless and wouldn’t go out of fashion. All three came together to create White & Green”.

It is clear to see the level of thought and care that went into creating their brand. As a family run business, White & Green care deeply about ensuring that their farmers and suppliers receive a fair deal. They run a fantastic blog, which covers everything from interior design tips to behind the scenes access to their suppliers. What is clear to see above all else is that Sari, Danielle and Rebecca are not willing to cut any corners when it comes to quality. “Our biggest complaint so far has been that ‘I can’t get my husband out of bed anymore since sleeping on White & Green sheets!’”.

Fairtrade Suppliers

White & Green work directly with organic cotton farmers in India. Combining classic designs with the finest handpicked cotton and master craftsmanship, the goal is to create quality bedding that is made to last. Fairtrade suppliers are a core aspect to the business, as Sari and her daughters wanted to have a positive impact on the lives of their farmers and suppliers. This reflects in the quality of the end products.

Within the cotton sector in India, hired workers are receiving below standard daily wages (on average EUR 1.80 per day) which is only 41% of the living wage. Cotton farmers are often caught in devastating cycles of financial dependency as they require genetically modified (GMO) seeds, fertilizers and insecticides to yield their quota. Child labour is also extremely prevalent, as poverty-stricken families send young children out to work instead of receiving an education. Farmers and industry workers are often subject to very dangerous working conditions. The use of hazardous pesticides by farmers under immense financial pressure is extremely damaging to the environment. Natural habitats are destroyed in the process.

White & Green are committed to supporting Fairtrade suppliers, in order to help break this cycle of poverty. Fairtrade sets social, economic and environmental standards for both companies and workers to comply with. They ensure that these standards are met by all parties involved. Fairtrade certified products guarantee safe labour practices, fair wages, no use of child labour, community support schemes and no use of hazardous pesticides.

From Seed To Beautiful Flower

When asked about any barriers to growth they faced on their journey, Sari pointed to a struggle in raising the finance they needed to grow their business. “Raising finance was our first big stumbling block – as in our business you must have a large stock always available in the warehouse to fit all the different sizes of beds etc. Then we were introduced to Convertibill® who helped us get over this problem”. Convertibill® trade where a bank won’t lend. We can do everything a bank does, but differently. If you are struggling to raise the finance your business needs to take off, Convertibill® could be the solution.

Clearly Sari, Danielle and Rebecca had the experience and knowledge to succeed. In order to get their business off the ground, they needed a reliable finance provider. Unfortunately, banks proved of little help, but in Convertibill®, they found a flexible finance partner willing to work with them to achieve their goals. “Convertibill® suited White & Green because they paid for our stock and then they own it until the debt has been paid. It was a win-win for all of us. They couldn’t lose out as there was always way more stock than what was owed to them. Banks were impossible and just would not give startups even an overdraft”.

4 reasons to consider the unique Trade Credebt®

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Convertibill® are proud to support Fairtrade business, and White & Green are a fantastic example of an Irish business embracing this model. Seeing the level of thought and care that goes into this family run business made supporting them an easy decision. Despite the current lock down, Sari has high hopes for the coming year. When asked about the company goals, she was brimming with positivity and ambition. “To double our sales in the next 18 months. And to become a household name for Irish People to buy their bedding products and know that they will be delighted with our quality and will keep coming back for more”. Sari’s positive can-do attitude has been a driving factor in the success of White & Green from the very start.

A Finance Provider With A Difference

Convertibill® can help your business to grow, where often banks and other lenders will not. We will work with you to form a flexible repayment plan to suit your needs. Our function is to facilitate growth and to provide the support you need to achieve your goals, no matter what they are. To start a conversation with a member of our dedicated team, click here. Our team will walk you through the process, and provide straightforward solutions to your trade.

We are proud to work with vibrant Irish businesses such as White & Green. The commitment of Sari, Danielle and Rebecca makes them a pleasure to partner with. We wish them every success in the coming year, and look forward to working with them to grow the business even further. If you have a great idea, or simply need help to take your business to the next level, start a commitment free conversation with us today. Let’s grow together.

Growth From The Ground Up

Living Colours is company importing Fairtrade flowers into the Irish market. They deliver nationwide to florists, supermarkets and garage forecourts. They have recently diversified, with the launch of a new website; 086Flowers.ie, aimed at the general public. Convertibill® are proud to have provided support Fairtrade businesses such as living colours. We commend them for the fantastic work they do to ensure that their products are reliably sourced.

Sowing The Seeds

Established in 1993 in Kilkenny, Living Colours have been a flamboyant addition to “The Marble City”. As one of the largest suppliers and importers of fresh flowers in the country, they have years of experience providing his customers with beautiful arrangements for all occasions. Living Colours have recently achieved ISO 9001 status, meaning they meet a recognised standard in providing consistently high quality products and services that meet both customer and regulatory requirements.

Living Colours are extremely proud of their social responsibility and sustainability profile. They have pledged support to Fairtrade products, a concept that has become extremely important to companies and consumers alike. For Living Colours, investing in Fairtrade products is not just a passing trend but a long term commercial commitment. They have partnered with a farm in Kenya and are firmly committed to improving the lives of African workers.

During the summer months, Living Colours will always strive to source flowers and plants from Irish suppliers where possible. No matter what the occasion, Living Colours guarantee to have a stunning range of products available. Their beautiful arrangements will add personality to any setting.

Find The Perfect Arrangement

Living Colours import fresh flowers and plants directly from Holland and other parts of the world and distribute them to florists. Visiting a florist is highly recommended for those occasions that need the perfect finishing touch. Carefully selected arrangements will add a touch of magic to a wedding ceremony or celebration. They can also provide a touch of class for funerals and other events. We have a special connection with flowers. Knowing they have been sourced responsibly from Fairtrade suppliers adds greatly to the enjoyment of Living Colours products.

Flowers and plants are delivered to Living Colours by refrigerated trucks three times a week, and daily during the busy season. This ensures excellent quality and freshness all year round. Nobody wants to buy flowers that are dehydrated, dried out and lifeless. When you think of Living Colours, think vibrant, fresh and powerful. The selection of flowers varies from week to week, depending on what is in season. Specialties include wedding flowers, exotic greenery and weekly specials. They also carry a wide range of fresh plants imported from Denmark. As mentioned, during the summer, when the Irish market is in season, Living Colours do their best to buy from local Irish growers. The diversity and quality of products that Living Colours offer is unrivaled. They are truly a market leader and a pleasure to partner with.

Flowers are one of today’s fastest growing grocery lines. There is always a demand no matter what time of year. They look good, provide instant customer appeal and enhance the attractiveness of the whole store. Living Colours can help increase your sales by supplying your store with all of following:

• Fully fitted stand
• Delivery three times a week
• Bar code labels
• Point of sale material
• Flower care leaflets

On any given day, Living Colours will have at least eight types of bouquet available for sale in your store. They also carry a wide range of fresh plants imported from Denmark. For a full product list or more information, click here to contact a member of the Living Colours team today.

Why Support Fairtrade?

Fairtrade sets social, economic and environmental standards for both companies and the farmers and workers who grow the food and products we consume. They ensure that these standards are met by all parties involved. Fairtrade certified products guarantee safe labour practices, fair wages, no use of child labour, community support schemes and no use of hazardous pesticides. For farmers and workers, the standards include protection of workers’ rights and the environment. For companies, they include the payment of the Fairtrade Minimum Price (FMP) and an additional Fairtrade premium to invest in business or community projects of the community’s choice.

4 reasons to consider the unique Trade Credebt®

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Convertibill® are proud to support Fairtrade business. Living Colours are a fantastic example of an Irish business embracing this model. Businesses with strong core values and a drive to succeed fit the Convertibill® model perfectly. Our role is to finance a business’ potential, and in Living Colours we truly believe the sky is the limit. Making use of our Convertibill® facilities has helped Living Colours to grow into the bright star they are today. Speaking with company directors Eleanor and Sherlock Foley about challenges the company has faced, they pointed to initial difficulties in raising finance, especially during tough times. “Raising finance to grow the business during recession years was difficult and expensive”.

How can Convertibill® Help Your Business Thrive?

Here at Convertibill®, we pride ourselves on being different. We offer a range of flexible finance options to suit your goals. Convertibill® can do everything a bank does except differently. We will trade where a bank won’t lend. When asked why Convertibill® finance proved the right option for Living Colours, Eleanor named the ease of access to funds as a primary factor. “Convertibill offered invoice discounting to us during high trading volumes with an easy trading platform to operate”.

Convertibill® are extremely proud to partner with market leaders such as Living Colours. We can help your business to grow, where often other lenders will not. We will work with you to form a flexible repayment plan to suit your needs. Convertibill® will support your business, so that you can focus on taking it to the next level. To start a conversation with a member of our dedicated team, click here. Let’s grow together.

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