As a leading provider of international trade finance, MODIFI is committed to helping companies facilitate global expansion. As the latest example of this commitment, we are pleased to announce the successful closure of a $15 million non-recourse factoring facility for a USA subsidiary of a Swedish lithium-ion battery manufacturer. The company's lithium-ion batteries have been utilized in several cutting-edge technologies, including commercial, industrial, and telecom applications across Europe, North America, Africa, and Asia.
Our client received a multi-year contract with a major telecom company, worth several hundred million dollars, to supply its lithium-ion batteries as the power source for the telecom company's nationwide 5G greenfield. This heightened demand in addition to Net 60 day payment terms led to a significant increase in working capital needs.
The client chose to partner with MODIFI in the USA due to its competitive pricing, flexibility with regards to collateral, and speed of execution. Also, MODIFI provided a seamless solution that was compatible with the clients existing bank facility.
"The energy storage market is set for huge growth in the coming years, with lithium-ion batteries predicted to unlock new innovations in a sustainable manner," Brian Dowd, MODIFI Director of Sales in the US, explained. "But while technology barriers have largely been overcome in recent years, the current supply chain imbalances and lengthy trade credit periods for importers & exporters continue to create working capital challenges for companies in the telecom and power storage industry. MODIFI is proud to provide international trade finance products to help its clients clear these hurdles and maximize growth."
The global lithium-ion battery market is projected to be worth $193.13 billion by 2028, driven by a compound annual growth rate (CAGR) of 23.3%. As one of the fastest-growing companies in Europe, MODIFI's new client is playing a key role in the industry's rapid expansion. With lithium-ion batteries set to be essential for the widespread adoption of new technologies like 5G, their trade will depend on large facility amounts in the majority of cases. Where these amounts prove challenging to deliver, MODIFI will be on hand to support its clients regardless of where they are based.