Deal Case Study: SME supplier ASK Foods
ASK Foods is an agro-processing company established by 3 brothers in 2008 which currently employs 107 people, but during peak season it employs over 400 workers and farmers in the village of Livoq in the Gjilan district in Eastern Kosovo. It produces a range of juices, jams, spreads and vegetables that are all natural with no additives, preservatives, artificial colors, aromas or flavors.
ASK Foods supplies the supermarkets Interex and Meridian Express, but finds it difficult to fulfill the growing volume of orders due to cash flow constraints. ASK Foods was selected to participate in AGC’s supply chain finance pilot and received training in November on trade receivables financing and AGC’s online platform.
Using the online platform, ASK Foods was able to select approved invoices to finance, some with values as low as $5 which supply on-demand orders to individual branches of the supermarkets. The Advance Trade Growth Finance Fund (ATGF) financed ASK Foods directly. Normally, ASK Foods has 45-60 day payment terms with the supermarkets, but ATGF provided it with 97% payment of its invoices upfront, allowing it to increase production for additional orders.
ASK Foods represents a typical client that can benefit from supply chain finance and demonstrates the flexibility that ATGF has to finance smaller SME suppliers and low value transactions. Hear what ASK Foods has to say about AGC’s program.
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