MODIFI, a leading facilitator of international trade finance, is pleased to announce the completion of a new partnership with a shipping services firm in Abu Dhabi, the United Arab Emirates (UAE). The deal provides the company with a 2.5 million credit line that will empower it to trade internationally more easily.
The MODIFI client is a global leader in international freight forwarding and logistics, with networks in Africa, the Middle East, Europe and the Americas. It has been successful by offering a range of services, including both local and international land transportation, project management, and major contracts with multinational companies.
The shipping giant was introduced to MODIFI by a buyer of an existing client. The buyer, headquartered in the US with offices around the world in Ireland, Spain, China, India, Argentina, and South Africa is one of the major players in the growing solar energy market. After already working with MODIFI in regard to a different supplier, the buyer had experience of the added value that MODIFI could provide. They, therefore, had no hesitation introducing the new Abu-Dhabi-based shipping client to MODIFI.
"The renewable energy market is one that has truly global reach, but the industry cannot meet international needs if trade financing hurdles end up scuppering promising deals," Ankit Goel, MODIFI Regional Director for UAE, India, Pakistan and Bangladesh explained. "In this instance, since the buyer had already worked with MODIFI, the seller was also convinced that we were the right partner for them from the very start. This made the entire process as fast and efficient as possible. We were able to complete the credit facility set up in just two weeks, enabling a swift resolution for all parties."
Prior to signing a contract with MODIFI, the client's existing payment terms were 30 days from the Bill of Lading (BL) date and the company had been unable to secure large volumes of shipping traffic due to a lack of funds. On the other hand, the renewable energy firm was unable to work with the pre-existing credit limits applied by the client and was looking for better payment terms.
Both buyer and client were happy to use MODIFI to reach a mutually beneficial outcome. The buyer now gets longer payment terms and the seller avails shorter terms and the extra liquidity provided by the MODIFI deal provides both parties with greater flexibility to secure contracts with international businesses.
The latest deal between MODIFI and its client in the UAE demonstrates the importance of optimising cash flow when forming international relationships. By closing large deals with substantial facility amounts, MODIFI is able to facilitate the international trade that is essential for the renewable energy market, as well as a host of other industries.