Daily News: January 24, 2018

DS-Concept Funds $30MM Facility for Trading Company

DS-Concept provided a $30 million credit facility to a trading company specializing in chemicals used in coatings, adhesives, X-ray films and refinery.

The company, based in China and exporting to the U.S., Europe and South America, will use the facility to finance open account terms with buyers overseas, fill more orders and pursue additional commodity opportunities with larger clients.

As the U.S. and Europe phase out niche chemicals markets due to obsolete equipment, environmentally abrasive procedures and expensive upkeep, the Chinese company, with new and sustainable components, has become a stronghold for the industry and requires accelerated cash flow to meet the demands and increasing order volumes of foreign buyers. Although its state-owned suppliers operate under TT before shipment terms, buyers abroad, including prospective commodity clients, request large orders with 90-day terms.

With limited assets that make it difficult to work with banks, the company turned to DS-Concept to replenish its liquidity through funding for open account 60- to 120-day terms and financing against letters of credit. DS-Concept could accommodate them because of its flexibility, ability to fund in U.S. dollars and resources to manage the company’s buyers.

“We are pleased to utilize our international resources and expertise in trade finance to help our client succeed in the changing landscape of China’s manufacturing industry,” said Alex Li, CEO of DS-Concept China. “With our help, the company is better positioned to take larger orders with more favorable terms and is able to foster stronger relationships with its suppliers and buyers.”