MODIFI is excited to announce a new partnership with an oil and gas trading company from the UAE, which derives most of its revenue from bunkering fuels.
Though the company has been performing well, the payment terms they had with their buyers were not ideal. They had to wait 30 days to be paid, which in a volatile industry such as oil and gas, could have a very detrimental effect on their planning. Their main buyer, the commodities giant World Fuel Services, was unwilling to renegotiate the terms, so the fuel provider instead opted for a solution that would benefit both parties.
With MODIFI, they could get paid upfront, as soon as the fuel was successfully bunkered, rather than wait 30 days. They invested the liquidity boost into purchasing, so they could close new deals that otherwise they would have been unable to fulfill. Whilst there were other financing options, they chose MODIFI because our platform allowed the rapid digital upload of multiple invoices, allowing a seamless transition from their old trading terms to having invoices financed with MODIFI. Moreover, since MODIFI had considerable experience with bunkering companies across the globe, they were able to offer the most flexible solution at the right price.
A bonus for the client was being able to speak to local colleagues in MODIFI offices across the world. MODIFI has offices in Germany, the Netherlands, India, China, Hong Kong, the UAE, and the USA.
Mr. J, the CEO of the company was delighted with the results. "MODIFI provided us with leverage to accept business beyond our existing limits" he said. "With this working capital, we can take our bunkering business to the next level. Having a financial solution that helps you adjust to supply and demand dynamics is perfect for us"
"We are happy to provide solutions to companies from a wide range of industries - the flexibility of our product allows us to do so. We could grant our partner a significant financing limit and they use as much as they need on a Pay-As-You-Go basis, which suits them. Happily for us, they use us every month to improve their cash position and maximize growth" said Ankit Goel, MODIFI's Regional Head of UAE.
MODIFI is solving global trade finance for SMEs. Using simple digital solutions, MODIFI looks to remove the paperwork, hassle and red tape that hampers those involved in international trade, giving them the working capital and risk protection they need to thrive.