Our customer

This importer distributor has unique contacts within the South African fine foods market. They source food products that are all natural. They contain NO preservatives, NO colourants, NO MSG or pectin (NO ARTIFICIAL ANYTHING) in any of the products. Naturally this has generated quite a bit of enquiry.

Business challenge

The market has changed considerably in recent years with the increasing popularity of natural foods and sourced ingredients. Whilst there has been an uplift in what customers are prepared to pay for these products, sourcing them at the right price has created a sales avalanche.

There is increased market demand for the quality and flavours of the South African ingredients and foodstuffs.

They have enquiries from major supermarket and food resellers and faced the challenges of not having enough funds to meet the demand. The challenge was to pay the suppliers in South Africa, get the containers shipped before being able to sell onto the stores.

The solution

To meet their goals, they needed a flexible funding package which could finance investment and growth. Lock Finance took the time to understand the business and its requirements, offering a lending package to help fund the purchase orders to initially fund the import and then a factoring facility for ongoing cashflow and growth needs. The financial strength of Lock Finance and excellent customer service meant the customer could be confident establishing a fast growing start up business with enough investment to meet the demands.

Result

The package means that instead of putting their home on the line, or struggling to manage Bank finance, which unfortunately was declined, they have a flexible facility offering funding from order to sale, sometimes 150 days.

Knowing they have the backing of Lock Finance they are able to meet the enquiry and demand, growing from one major customer to many, spreading the risk of their business.

They are well on their way to creating the million dollar business they dreamed of.