Pakistan textile and apparel firm secures €1M credit line as part of new MODIFI deal

The textile and apparel sectors are hugely important across the globe.The global textile market size was valued at USD 993.6 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.0% from 2022 to 2030. Increasing demand for apparel from the fashion industry coupled with the growth of e-commerce platforms is expected to drive the market growth over the forecast period. In some markets, such as Pakistan, where the textile industry provides employment to 40% of the country's labor force, they also play an essential role within the domestic economy. That's why MODIFI is proud to announce its latest client deal involving a textiles and apparel firm based in one of Pakistan's most important economic centers.

The deal provides the client with a new 1M credit line that will allow it to better meet demand for its quality fabric products. Prior to the deal's finalization, a lack of working capital was restricting the client's growth and resulting in lost business as it was unable to sufficiently increase supply to meet customer requests.

The pre-existing payment terms of 90 days from the Bill of Lading (BL) date made trade particularly difficult whenever the client needed to deliver large volumes of its product due to a lack of capital. As such, the client was looking for additional liquidity to meet buyer demand - something that has been facilitated by the additional credit line included within the new MODIFI deal.

The extra credit line will be used to facilitate increased trade with a supplier of home textile products in the US. The deal should ease trade bottlenecks between the two parties and ensure that supply and demand remain balanced in the future.

MODIFI's relationship with its new client in Pakistan demonstrates how international the textile and apparel trade is and how essential financing is to this trade. In Pakistan, for example, some of the top destinations for its textile exports include the US, the UK, Germany, China, and the Netherlands. For the fiscal year 2021, the country's total textile and apparel exports totalled $15.4 billion.

"The importance of the textile industry to the Pakistan economy cannot be overstated - but neither can its importance internationally", Ankit Goel, MODIFI Regional Director for UAE, India, Pakistan and Bangladesh explained. "We are delighted to be able to offer a more favourable credit line to our new client that will enable it to ramp up supply and expand its product reach. Through deals like this, we aim to become the go-to provider of export factoring services around the world."

While Pakistan and the US may be separated by thousands of miles, facilitating international trade within the textile and apparel sectors creates mutual benefits for the inhabitants of both nations. That's what MODIFI's export factoring services will continue to focus on.

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Elena Ermishina
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