At Kaizen Consulting, we have supported a Spanish company specialising in the production and distribution of citrus fruits and vegetables in finding a financing solution tailored to the specific characteristics of its business.
The seasonal nature of the sector, together with the timelines involved in cultivation, harvesting and commercialisation, created a structural need for working capital and required financing capable of adapting to the company’s actual business cycle.
The challenge: balancing payment and collection periods
The company faced a significant mismatch between payments to suppliers and the timing of collections from customers.
Some suppliers required advance payments of up to 30%, while products such as oranges and onions have long growing and commercialisation cycles before they begin to generate cash.
This situation increased the company’s liquidity requirements during certain stages of the season and could limit its ability to manage day-to-day operations normally.
The solution: financing through ICO Crecimiento
After analysing the company’s financial position and funding needs, Kaizen Consulting structured and supported the transaction through to the successful arrangement of financing under the ICO Crecimiento programme.
The funds were allocated entirely to working capital, allowing the financing structure to be aligned with the specific timing of the company’s production cycle and providing greater flexibility to meet its operational commitments.
Greater stability to support continued growth
The transaction has enabled the company to finance the liquidity requirements associated with its business activity, meet the advance payments required by suppliers and reduce pressure on its cash flow.
As a result, the company now benefits from a more stable financial structure, allowing it to manage its production and commercialisation cycles more effectively and continue developing its business without placing unnecessary strain on its day-to-day operations.
This case demonstrates how a properly structured financing solution can adapt to sectors with particularly demanding cash-flow cycles and become an effective tool for supporting sustainable business growth.
