Swiss trader optimises cash flow and reduces payment risk

NGI Trading encountered a complex challenge in managing its payment terms and financial risk. The company needed to extend favorable payment terms to its counterparty without surpassing existing credit lines. Additionally, it was critical to eliminate any risk of non-payment by the buyer and ensure that cash payments were received within two days of issuing the invoice. This situation underscores the typical conflict in raw material sales, where buyers prefer extended payment periods while sellers require prompt payment.

To address these challenges, NGI Trading used Metalshub’s forfaiting feature. In less than one hour, NGI Trading was registered and eligible to use the embedded forfaiting feature provided by Metalshub’s partner Walbing. Once this was done, NGI Trading simply needed to upload the invoice, insert the forfaiter’s bank account information on the invoice and inform the counterparty. A win-win for all parties involved. The competitive rates and straightforward process offered by Metalshub Forfaiting were particularly appealing to Matteo Chareun, the Commercial Division Manager.

The embedded forfaiting feature allowed NGI Trading to offer attractive payment terms to their counterparty while securing a profitable margin. The process, facilitated by Metalshub and its partner Walbing, was both efficient and well-supported, ensuring a smooth implementation.