Bangladeshi Garment Brand Secures a €5.8M Credit Line With MODIFI

MODIFI is proud to announce a new deal partnership with a 5.8M EUR credit line to propel business growth for a leading ready made garment manufacturer. The Bangladesh company makes and distributes high-end, sustainable apparel to buyers worldwide.

The ready made garment manufacturer struggled with limited credit from traditional lenders and was having trouble securing the funds it needed to pursue expansion. Moreover, their bank refused to endorse the shipping documents until they received payment from the buyer.

A significant cash flow gap and problems exchanging goods had negative impacts on business. Under the Delivered at Place (DAP) 90 payment terms, the garment manufacturer faced significant financial risks if any damage occurred to the shipment while in transit. The Incoterms allowed the buyer to use any shipping method, further exacerbating the risk.

When an opportunity to sell to a major buyer in the USA arose, the exporter needed to find a financing solution to position them for greater market reach. After contacting MODIFI, the firm signed a deal to resolve its cash flow, risk mitigation, and goods handover challenges without hesitation. Thanks to the digital on-boarding, they were uploading documents and having trades financed within days.

The exporter said, "Despite the high demand for our products and availability of opportunities, traditional financing was slowing our growth down. The cash flow gaps and challenges handing over goods meant we had to do something about our credit portfolio. Unlike the banks, MODIFI quickly set us up with the large credit line we needed while offering default protection. Getting a credit line of this size usually takes much longer to finalize - we've saved a lot of time and can focus on our expansion and post Covid recovery."

MODIFI's Sales Director in Bangladesh, Monjur Hossain added, "Technology is critical to the future of financing global trade. Many conventional lenders fail to leverage the digital tools necessary to solve unique import and export challenges. MODIFI's flexible, simple, affordable, quick, and personalized digital trade finance solutions give more companies the chance to pursue growth on a level playing field. If you want to find out how MODIFI can help solve your trade financing challenges, reach out to us any time."

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Elena Ermishina
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