Medium term financing structure regarding third-party ‘manufacturing’ facilities
Majority of global multinational companies and/or large corporates want to ensure standardisation and quality-control for their products to the end-users. At the same time, some corporates want to outsource certain components of manufacturing to local ‘vendors’ where these corporates will have 100% off-take of the production.
These third party manufacturing units have two types of funding requirements:
1. Normal working capital funding (usually upto 18-days or so) that is currently being provided by banks or supply chain programs
2. However, some of the local manufacturers are small corporates, who are looking for 3-5 years term-funding solutions to invest in plant & machinery for the production in order to meet quality standards of corporates (i.e. off-taker).
Pinnacle Trade Finance has past experience and expertise in off-balance-sheet medium term financing (3-5 years) to local manufacturers to help corporates use most cost-effective manufacturing units across different countries for their requirements. We can also help create partnership and funding solutions with banks (international and/or local) for the same.