Securing the working capital required for expansion into key offshore markets
Picture credit: dragana991
Challenge: How to deliver on multiple opportunities at once.
The Solution: NZEC’s Loan Guarantee supported their lender’s ability to provide a working capital facility.
The Benefit: Synergy Nutrition could take advantage of a great opportunity to grow its export market.
Synergy Nutrition Limited (Synergy) is known for its innovative approach to plant-based nutritional supplements and functional foods. Established in 2015, Synergy has carved out a niche in the health and wellness industry for their ability to leverage New Zealand’s rich natural resources to create high-quality, sustainable products.
Synergy Nutrition supplies house-branded products to a diverse range of small and large companies around the world. When a prominent international brand approached them with a substantial purchase order, seeking a long-term supply of Synergy’s products, the owner Tony recognized the great opportunity. However, he was also aware that the payment terms of such a large order could strain the company's working capital, potentially impacting their ability to fulfil existing sales orders and acquire other new clients.
In discussions with their bank about solutions to address the working capital challenges posed by the payment terms, the ANZ trade team recommended involving New Zealand Export Credit (NZEC) to enhance the capacity and security of the proposed financing facility from ANZ.
After completion of its due diligence on this transaction NZEC were satisfied with Synergy’s ability to deliver on the growth opportunity. This was reinforced by Synergy’s strong trading history, ANZ’s commitment to sharing risk in the additional financing, and Synergy’s proven track record in managing relationships with large international clients. With this support and confidence, Synergy Nutrition is now successfully fulfilling the customer orders and capitalizing on the growth opportunity.
If you, or your company find yourself in a similar position, reach out to our team today to discuss how we may be able to assist you. We are size and sector agnostic with a mandate to assist the growth of New Zealand exporters.