Thompson International
“When we needed a new lender, FGI was the only call I needed to make given their track record for completing international deals successfully. Not only was FGI able to come up with a creative solution to completely pay off our incumbent lender, but they also negotiated better coverage with our insurance carrier, allowing us to extend better terms and consequently increase our sales volume.”
President, Thompson International
Introduction
For over 60 years, Thompson International has been providing high-quality rotary drill bits used for mining, water well development, construction, exploration and much more. Based out of Kentucky, their rotary drill bits are sold and used worldwide.
Situation
With the domestic mining industry experiencing a downturn, Thompson was focusing on international growth. They were onboarding new international clients and, as a result, their foreign accounts receivables were growing. However, given the turbulence the mining industry was experiencing, their incumbent lender did not feel comfortable with the increased international exposure. As a result, Thompson needed a new lender. One that could support their strategy for international growth. Since they had firsthand knowledge of FGI’s track record for successfully executing international deals, FGI was their first and only call.
Solution
FGI took the time to understand their turnaround plan. They identified existing global customers that had not been granted open terms as an untapped source of availability. The key would be to secure credit coverage for these clients.
Once the coverage was in place, FGI provided Thompson with a facility against their total assets including foreign A/R and inventory to fund their international growth. In addition, Thompson was able to extend global clients better terms, which then consequently translated into an increase in sales volume.
