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Success Stories
IMPORTER OF NOVELTY ITEMS
A small company operated at breakeven or a loss for the first five years of its existence. Finally in the sixth year the company started to book substantial contracts with one of the larger domestic retailers. The overseas manufacturers, however, required letters of credit before they would put the goods into production. Traditional lenders wanted outside collateral to support any letter of credit exposure. EGF issued the necessary letters of credit to the overseas suppliers based on the strength of the transaction without the benefit of side collateral. We paid for the merchandise when it was shipped, paid the duty and freight on arrival in the US, and factored the sale to the retailer. When the retailer paid the invoice, EGF took what was owed to it, and passed the net proceeds to the client. In one transaction, the client made up for most of his prior losses. EGF continues to fund this client’s contracts to the same and other retailers.
WHOLESALER OF NAME BRAND APPAREL
An experienced salesman with excellent contacts in the retail market had the opportunity of forming his own company to wholesale excess branded merchandise for a major manufacturer. Unfortunately he had limited funds, and the manufacturer would only sell him the product on cash terms. The salesman approached EGF through the efforts of a broker. EGF funded all of the entrepreneur’s purchases that were pre-sold to credit worthy retailers. EGF also factored the resulting receivables.
IMPORTER/WHOLESALER OF GENERAL PRODUCTS
A recent immigrant from Asia had a successful record of selling general products into the US market for his former employer based in Asia. He moved to the US for family reasons, and decided to form his own company to earn a living. Because of the principal’s extensive experience in the business, and despite the lack of personal assets in the US, EGF chose to fund the new company’s importation and sale of general merchandise to its US customers. EGF mitigated its risks by providing tight controls on each transaction and insisting that the client obtain credit insurance on its US customers. As a result, subject did $12,000,000 of sales the first year
IMPORTER OF MEDICAL DIAGNOSTIC EQUIPMENT
A US manufacturer of medical diagnostic equipment needed to fill sizeable purchase orders from its local customers. The equipment consisted of a proprietary machine with a computer, a measuring instrument and some specially designed softwear. Based on firm orders from the client’s customers, EGF opened L/C’s to the overseas supplier of the machines. EGF inspected the machines prior to shipment, and paid for them while they were in transit. When the machines arrived in the US, EGF paid the duty and freight, and purchased computers just-in-time to reduce the overall costs to the client. The merchandise was shipped to the warehouse where the client wedded the computer to the machine and added his softwear and a measuring instrument. The product was delivered to the hospitals, and EGF factored the receivables.
APPAREL MANUFACTURER
A newly formed co. with its own designer line of apparel needed financing. EGF purchased the fabric domestically, and had it shipped to the manufacturer located in the Dominican Republic. When the manufacturer completed the cut, make and trim process, and the garments were completed, EGF paid the manufacturer for the finished garments. The product was delivered to the client’s US customer in a timely fashion, and EGF factored the receivable.
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