The bespoke trade finance structure for ECO Resources not only helps improve its cash flow but also supports its sustainable business expansion together with its suppliers. For ECO Resources, Bank of America’s solution stood out in the following aspects:
Flexible: The facility supports a full suite of trade solutions including but not limited to commercial letter of credit, trade loans to fund letter of credit and open account basis payments, as well as financing ECO Resources’ exports to Europe. This gives ECO Resources the flexibility it needs to support its overall trade flows.
Simple: From ECO Resources’ perspective, the solution is simple and straightforward and therefore fast and easy to implement, supporting business growth with suppliers. The structure also includes a simplified process for ECO Resources to present alternative transportation documents available for domestic trade within free trade zones in China.
A significant improvement in cash flow: From either payment at sight or in mere days, the solution enabled ECO Resources to improve its working capital and strengthen its cash flow.
The launch of this solution cannot be more timely as ECO Resources looks to grow its environmentally friendly energy business amidst the economic downturn prompted by the COVID-19 pandemic.