SACO AEI Polymers
“After working with FGI to finance our Mexican sister company in 2015, we knew we didn’t need to look any further when the small overdraft facility we had with our US lender was no longer enough to support the company’s growth. As always, FGI provided us with a competitive and sophisticated solution to support our immediate working capital needs and our continued international expansion.”
Introduction
SACO AEI Polymers is a customer-driven manufacturer providing premium value and innovative polymer solutions in North America, Latin America, South East Asia, Europe and Middle East & North Africa.
Situation
SACO had acquired a UK company as a turnaround investment 6 years ago. As SACO worked to improve the business by investing in equipment, new process development and personnel, their working capital requirements changed. The company had access to a $2.5 million overdraft facility from their US lender, however this facility was no longer enough to support the growth of their UK subsidiary as they actively expanded into new geographic regions and developed new products to increase sales and remain competitive.
Having worked with FGI in the past to finance their automotive sister company in 2015, SACO knew FGI would deliver a creative solution to provide greater availability and flexibility.
Solution
FGI immediately realized that SACO’s assets supported a far bigger line than the $2.5 million overdraft they currently had access to. By fully underwriting the collateral, not only was FGI able to provide SACO with an $8 million line of credit on both their AR and inventory in the UK, but also on their export sales to customers in Asia and the Middle East.
