Case Studies
$11.5 million ETF facility to export customers of a Mumbai based diamond and gold jeweller
Kyko provided an aggregate total credit limit of $11.5 million to a diamond and gold jeweller in Mumbai
The supplier provided a list of customers to Kyko, most of whom were in Dubai, Singapore, Hong Kong and Thailand
The supplier requested a credit limit of $1 million and 90 days open account terms for one of its Dubai-based customers; Kyko was able to provide a credit limit of $2.0 million, well above the requested amount
All paperwork related to the transaction was prepared by Kyko’s solicitors in Dubai
Kyko’s solicitors attended at the customer’s offices in Dubai to have the documents signed and notarized, thus minimizing inconvenience to the customer
Kyko was able to release the funds within two hours of receiving e-mail copies of the relevant executed and notarized documentation
The entire transaction, from the time the supplier provided a customer list to Kyko to the time that the funds were released, was completed in two weeks
The supplier continues to obtain ETF from Kyko on a monthly basis for his various customers, which has allowed the client to expand its business, grow its customer base and improve its overall performance
The supplier’s customers enjoy open account terms and extended payment plans, and are willing to pay a premium for the privilege of having such benefits
$500,000 provided to an automotive component manufacturer in Pune, India
Kyko provided several thousands of dollars worth of ETF to a Pune based exporter to an OEM in the UK
Most OEMs have a systems in place that does not permit it to make payments until the shipment of goods arrived; nor do they open a letter of credit
This posed problems for our client, who needed funds on an expedited basis
Kyko paid the Pune based exporter 78% of invoice value immediately upon receipt of copy of bill of lading by email
Plus it paid another 12% immediately upon receipt of goods by the customer in the UK
In all situations, availing yourself of Kyko’s financing will improve your debt to equity ratio, which is illustrated by the following example:
Without Facilitation
Debtors $100
Inventory $50
Fixed Assets $200
Total Assets $300
Creditors& Current Liabilities $75
CC & Bank Debt $150
Total Liabilities $225
Total Equity $75
In this case, the debt to equity ratio is 3:1.
If this company receives from Kyko, for example, in the amount of $50 towards its export receivables through ETF, the debt to equity ratio significantly improves as follows:
With Facilitation
Debtors $50
Inventory $50
Fixed Assets $200
Total Assets $250
A/P and Accrued Liabilities $75
CC & Bank Debt $100
Total Liabilities $175
Total Equity $75
In this case, the debt to equity ratio decreased to 2.33:1. The client’s accounts receivables decreased by the amount of the financing, as did the bank CC, assuming that the financing provided by Kyko was used to pay down the bank debt.