In 2020, MT International identified a unique opportunity within the Latin American food industry. Founded by Daniel, a seasoned expert with over a decade of experience working with major traders in Canada and the U.S., had already established strong relationships with key suppliers and clients. This strategic positioning, combined with a growing market, allowed the company to identify a promising niche: sourcing meat from major U.S. producers and selling it to Latin American distributors.
However, Despite their readiness to capitalize on this market, MG Trading faced a significant hurdle—securing the necessary capital to fund operations. Traditional banks were not allowed to extend credit due to the company's brief financial history, which left it searching for an alternative financing solution. That's when Summar Financial stepped in.
The Challenge
MT International's business model relied on purchasing meat from large U.S. producers in cash and extending credit terms to Latin American importers. While the demand for their products was apparent, the company's short operating history and limited financial track record made it difficult to access funds. Traditional banks couldn't offer the kind of capital MT International needed to execute its business plan as it was a newly established business.
The Solution
Summar Financial recognized the opportunity that traditional banks couldn't seize. Instead of focusing on MT International's brief financial history, Summar looked at the strength of the company's debtor relationships and its owner's expertise. By offering Purchase Order (P.O.) financing and factoring, Summar advanced funds based on MT International's invoices and orders from reliable debtors. This approach allowed the company to bypass the constraints imposed by its limited history.
Summar's support was pivotal. By advancing 70% of the purchase order value upfront and 90% of its invoices, Summar enabled MT International to secure products from suppliers without depleting their cash reserves. With this backing, the company could confidently fulfill large orders from the start, rapidly establish itself in the Latin American market, and meet the growing demand. By leveraging purchase order financing and factoring, MT International could purchase products upfront, ship them to Latin America, and offer its clients favorable credit terms without affecting their cash flow or incurring debt.
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Accelerating Growth
Thanks to Summar's tailored financial solutions, MT International experienced explosive growth. In just two years, Summar's factoring helped MT International grow from $900,000 to $20 million in annual revenue.
This partnership was built on more than just funding—it was also about trust. Summar believed in the expertise of MT International's founder, Daniel, and his extensive network of suppliers and clients. With this trust, Summar provided the financial tools that enabled MT International to take on larger orders, expand into new territories, and flourish in a highly competitive market.
Daniel's deep industry experience and established relationships were essential to the company's growth. Summar trusted MT International's leadership team, its business model, and its market knowledge. This trust allowed MT International to thrive where others might have struggled.
Put in Daniel's own words, "[Summar is] a great company. Works to understand your business and your needs. [Summar] works with you as a part of your company rather than solely a Client-Vendor relationship. Fast funding and always available to help with business needs. I would highly recommend working with them."
Graduation to Traditional Banking
After two years of remarkable growth, MT International reached a point where it could transition from alternative financing to traditional banking. The success achieved with Summar's financing helped the company establish a solid financial foundation, making it an attractive client for conventional banks. By 2023, MT International had secured a line of credit from a regional bank, marking their "graduation" from alternative financing to conventional lending options.
MT International's success is a testament to Summar Financial's ability to empower businesses with high potential but limited financial history. This story highlights how Summar bridges the gap between startups and traditional banking by providing flexible financing solutions that foster growth. For businesses, this means access to the capital they need to thrive. For bankers, it presents the opportunity to partner with a company dedicated to helping businesses succeed, creating pathways for sustainable, long-term success. Contact us today.