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Delphax Technologies

“We can print anything . . . except money. So, we’re extremely happy that FGI had the flexibility and vision to provide financing that our company can use around the world.”

-Gregory Furness
Vice President & Chief Financial Officer, Delphax Technologies

Introduction

How does a printing company avoid red ink? At Delphax Technologies, the answer is “innovation.” For more than 30 years, the Minnesota-based firm has been a leader in the design, manufacturing and delivery of advanced digital printing solutions. Delphax helped pioneer high-speed digital imaging, and is noted for work with financial institutions around the world.

Challenge

Delphax had been investing heavily in creating faster and smaller digital imaging solutions. While they were very close to launching their new technology, they had exhausted their existing working capital and needed more money to bring it to market.

Solution

Delphax and their domestic bank decided that the best way to get the cash infusion they needed was to leverage its UK subsidiary’s accounts receivable and inventory. To achieve this, Delphax’s domestic bank brought in FGI. FGI swiftly evaluated the complex UK inventory and their accounts receivable but discovered that they would not be sufficient for the line of credit that Delphax required. Fortunately, Delphax had another subsidiary in France. Based on the combined AR and inventory of the two subsidiaries, FGI was able to provide Delphax with the line of credit they needed in order to bring their new technology to market.

Results

All parties were thrilled; Delphax injected roughly $1 million into its business without accessing capital outside of their current facility. In addition they now had the infrastructure to securely position themselves for global expansion, with their US bank supporting their domestic financing needs and FGI as their international lending partner.