CASE STUDY Company ABC was established in Kenya and has operated for over 45 years providing logistics and transport solutions to a wide range of clients. Over the years ABC has been consistently recognized as one of the leading Kenyan SMEs in its sector and is one of the few kenya revenue authority certified Green Channel Operations in Kenya. ABC is a logistics solutions provider integrating advanced technology with a team of trained industry experts and a modern professional approach to service delivery. With a commitment to efficient streamlined operations open communication and enduring clients relationships. WORKING CAPITAL FINANCING WHAT THEY DO. They believe that trade is important in order for a nation to grow and we are here to promote it. ABC offers credit facilities to their customers to ensure that they are able to have a cost-effective smooth flow of goods without blocking too much of their capital lines and all of this in a quick manner, with less documentation. Most of our customers are long standing customers with ranging business relationships from 10 to 30 years with very low to none default rate. ABC FINANCE THE FOLLOWING COSTS- Freight charges for Ocean and Air: Customs duties and taxes; Port,Shipping line and Railage Charges and other logistics costs including clearing and transport charges. For the year ended June 22. They have provided facilities of Kshs 8.9b (USD 67.2m) CURRENT CREDIT TERMS They have credit agreements in place and the following are the average credit terms: a) Duties and Taxes 3 to 10 days credit b) Shipping lines and Railage 15 to 45 days c) Other logistics costs such as transport and agency fees 30 to 90 days

WHAT IS THE REQUIREMENTS AND OPPORTUNITY

They are looking for a funded facility for USD 3m representing 60 pct of their Trade receivables on tenors ranging from 30-90 days in Kshs at competitive rate with limited recourse to the client. What are your thoughts on this deal? How would you present this file to the Credit Committee? Using trade finance facilities such as Export disounting, Import loans or anothe facility Factoring