The company Packalu is a manufacturer of aluminum tubes using a hydraulic pressure stamping technique. Its products are used in packaging or as components in the automotive industry.
The company directors decided to focus their manufacturing activity on the production of parts with very high added value and to subcontract the simplest pieces to an Asian supplier. Yet this strategy meant that Packalu faced lengthened lead times and Asian suppliers who required a letter of credit as collateral for its production. This blocked the company’s financial resources, resources that would be more usefully utilized elsewhere in the business.
Packalu uses the services of Lea Trade to provide the necessary financial support to implement their new supply and manufacturing strategy. Lea Trade opens the necessary credit documents before the Asian production begins and ensures delivery to warehouses throughout France.
Lea Trade then bills Packalu with payment terms set at 45 days.