At DVK, we provide finance to organisations to help them realise their international expansion plans using our unrivalled industry knowledge and unique heritage.
With a proven track record in helping a number of clients achieve their international expansion plans, coupled with our own experience of building a multi million pound turnover global business, we are uniquely placed to help organisations find the right financial solution to support their business growth.
What are the options?
Rather than push clients in to using one of a suite of pre-determined products, we prefer to treat each business as an individual case and provide a bespoke financial solution that best suits its particular needs.
A dedicated investment manager will work with your organisation to determine the most suitable solution for your particular business and work with our global network to achieve this.
Asset Based Lending
Asset based lending is used by over 40,000 businesses in the UK to fund their activities. Funds are lent against the assets a business owns, which could include property, plants, machinery and stock. In the case of international trade, this could include assets tied up in the supply chain such as stock, which many traditional lenders such as banks may not accept.
Receivables finance, also known as ‘forfaiting’ in the international trade arena, is where a financier releases funds to a business based on an order that they have secured from a customer. This means the business does not have to wait for their customer to pay them as the financier effectively purchases the invoice or the debt and recoups the money from the customer direct.
By outsourcing the debt to a third party the business receives an immediate cash injection and is able to continue financing its growth plans and focus on its day-to-day business activities.
In the case of forfaiting, the business exporting and the financier work together to agree payment terms with the importer. The financier then takes on the debt from the exporter and pays them the monies due from the importer. As well as helping the exporting business maintain a healthy cash flow by paying them upfront, the financier takes on any risk associated with non-payment by the importer and removes the debt from its balance sheet.
Another option for those involved in international trade is pre-shipment finance. The financier advances an agreed percentage of the value of the purchase order from secured contracts to the business. This money can then be used by the business to help fund the activities it needs to carry out before it ships the goods to the importer. For example, the money may be used to secure warehousing space, pack raw materials or pay for the required export documentation to be produced.
Similarly to pre-shipment finance, post shipment finance is where a financier advances an agreed percentage of the value of anticipated customer payments, but in this case after the goods have been received. This type of finance can be used by both producers of raw materials and manufactured goods and like receivables financing means that the business in question isn’t waiting for customers to make payment before receiving monies owed. It is able to maintain a healthy balance sheet and focus on other activities.
Many of our corporate clients choose to combine structure trade and commodities finance support with our other products to suit their particular needs.
While our approach is to create a bespoke solution for each client, our corporate finance solutions are typically structured as follows;
- Private Equity
- Venture Capital
- M&A finance