Case Study
Manufacturer of winter sport equipment uses A.B.S. Factoring
Thanks to sensible financing, expansion into foreign markets is possible
Traditional company on expansion course
This customer is a traditional Swiss manufacturer of winter sports equipment. It specialises in high-quality ski and snowboard equipment for discerning customers with a passion for snow sports. The products are marketed by well-known winter sports enthusiasts from the ski and snowboard scene.
Since 2012, the company has relied on the many advantages of A.B.S. Full-Service-Factoring for the global distribution of its products. “The high seasonal fluctuations in the winter sports business – 75 per cent of sales are generated between July and September – force us to strictly plan our cash flows,” explains the head of the finance department at our customer.
Factoring as additional financing
The winter sports company operates globally and sells its equipment in all major winter sports markets from Asia and Australia to Europe and North America. The company even has its own subsidiary in the latter. Our customer utilises various financing instruments for financing. In addition to credit financing via the house bank, the company utilises full-service factoring, especially when expanding into foreign markets.
Immediate liquidity from outstanding receivables
Our customer receives 90 per cent of the invoice amount from their outstanding accounts receivable within 24 hours. Long payment terms, as required by many wholesalers in international trade, can be granted without any problems and without causing liquidity bottlenecks. With full-service factoring, the company also benefits from prior credit checks on customers and comprehensive protection against bad debt losses. This is particularly valuable when expanding into new markets, as information about local business partners is initially scarce.
Head of the finance department of our client
Successful expansion course
A.B.S. full-service factoring is successfully supporting the winter sports company in its global growth strategy. Turnover has almost doubled since 2012. More than half of the turnover is realised in exports. In addition to immediately reusable liquidity, factoring also supports the company by taking over debtor management.
Despite outsourcing accounts receivable management, our customer retains an overview of its outstanding receivables. The A.B.S. Factoring AG online portal allows the responsible employees to view the maturity structure of the individual debtors at any time. Daily statements by e-mail supplement the information provided. The head of the finance department adds: “We particularly appreciate the personal contact with our account manager. She coordinates the advisory and operational services and is up to date on all processes.”
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