Case studies

FMCG Trade Credit Solution

Trade Credit Solution. Distressed stock
Trade Credit Solution. Distressed stock

In a fast moving consumer driven marketplace, companies can often find themselves with excess, short dated or obsolete stock or assets which are tying up capital that could be better utilised within the business or are facing a write down in value. Active classic solution allows clients to use these assets to part fund future marketing activity or business costs, releasing the capital or realising Extra Value from the asset.

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The challenge

Our client was a new entrant in the competitive FMCG market in Australia which had outstanding production capabilities but a limited distribution network. This resulted in excess stock placed at a value of $150 000 and a resalable value of only $30 000.

Our solution

  • Active International identified an alternative remarketing channel through which the stock could be cleared in compliance with the restrictions set out by the client. We were able to issue $150 000 in Trade Credit to the client.
  • Thanks to the agency’s collaboration with Active, the Trade Credit was able to be utilised to part-fund media across a number of media suppliers which satisfied the objectives set out by the client.
  • Rather than receiving $30 000 in exchange for their excess stock, the client received ongoing cash rebates to the value of $150 000 as the media volume was placed across the preapproved period of time. Through utilising all of the Trade Credit issued, the client created a $120k upside to their business.

The Benefits

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Contact us

If you would like to find out more about our Corporate Trade business models and how this could be beneficial for your business, get in touch with Anna Last, Commercial Manager, Active International by email or phone.

+61 2 9466 9109

If I had my life to live over again I would elect to be a trader of goods rather than a student of science. I think Barter is a noble thing.

Albert Einstein

This solution could work for you if you...

  • Want to increase sales of a product

  • Want to introduce/promote a product to a new market

  • Are looking to increment marketing budgets