For exporters, securing a large international order is a significant achievement, but it can also present a major working capital challenge.
The gap between receiving an order and receiving final payment can strain cash flow, making it difficult to fund the production or procurement of goods.
Pre-Export & Pre-Production Finance from Firmroot Capital is designed to bridge this critical gap. We provide targeted, short-term funding that enables you to accept and fulfill larger orders with confidence, ensuring you have the necessary capital to meet your contractual obligations on time.
Our process is structured around the security of your trade transaction:
Confirmed Sales Contract: You present us with a valid purchase order, sales contract, or a Letter of Credit from a creditworthy international buyer.
Financing and Due Diligence: We analyze the strength and viability of the underlying transaction, including the buyer's credibility and your capacity to fulfill the order.
Disbursement of Funds: Upon approval, we advance the necessary funds directly to you. This capital can be used for procuring raw materials, manufacturing, processing, and packaging costs.
Production & Shipment: You produce and ship the goods to your buyer as per the contract terms.
Settlement: The proceeds from the export sale are used to repay the financing. Typically, payment from the buyer's Letter of Credit or other instrument is directed to us to settle the loan, with the remaining profit disbursed to you.
Manufacturers: Requiring capital to purchase raw materials to fulfill a large export order.
Commodity Traders: Needing funds to aggregate goods from various local producers before export.
Processors & Exporters: Facing costs related to processing, packaging, and logistics before shipment.
Growth-Focused Businesses: Seeking to take on larger contracts than their current cash flow would typically allow.
Unlock Growth Potential: Confidently accept large orders and scale your operations without being constrained by your balance sheet.
Improve Cash Flow: Maintain healthy liquidity for your day-to-day operations while your capital is invested in production.
Meet Deadlines: Ensure you have the funds to meet production timelines, avoiding costly delays and potential penalties.
Transaction-Based Security: The financing is primarily secured by the strength of the export contract itself, making it more accessible than traditional corporate loans.
