SK Automotive
“We had been looking for a financing solution to fund our significant growth in Mexico for a number of months. After being introduced to FGI, they immediately understood our needs and structured a deal that was a win-win. The entire team at FGI was extremely professional and very helpful during the initial funding and startup. With the FGI partnership and credit facility, our Mexican subsidiary now has the financial resources to meet the growing demands of our customers.”
AESSE Investments/SK Automotive
Introduction
SK Automotive manufactures automotive interior headliners and components, and sells them to original equipment manufacturers such as Johnson Controls, Chrysler, and Magna. US based holding company, AESSE Investments, bought the Mexico facility out of bankruptcy in 2010 to rebuild it from the ground up.
Situation
Projections for SK Automotive were pointing towards triple growth over the next few years, but they needed considerable capital to reach the next phase of their growth. Since their domestic bank only allowed for a small portion of working capital to be utilized in Mexico, and with very limited options for financing in Mexico for early stage and middle-market companies, SK Automotive needed to find a lending partner that could cater to their specific needs. Richard Marcus of FirstMerit Bank, a lending partner to one of AESSE’s affiliate companies, referred them to FGI.
Solution
Due to FGI’s in-depth expertise and extensive experience with financing in Mexico, FGI was able to structure a facility to provide SK Automotive with working capital against the company’s Mexican receivables. More importantly, FGI structured a facility that had the ability to grow with the business over time.
As a result, SK Automotive is now able to take on innovative programs with both new and existing customers, maintaining the company on a firm path to reach projected revenue goals. Furthermore, FGI’s involvement has allowed AESSE Investments to free up a larger portion of the US line of credit previously being utilized in Mexico.
“I’ve known and worked with FGI for many years. They are experts at international receivables financing and have extensive experience working in Mexico. I referred SK Automotive to FGI because I knew they would be able to structure the tailored credit facility they required.”
FirstMerit Bank
