Additional working capital
“GFL are highly competent in many areas and create tailor-made solutions in addition to having access to an extremely good network.” Gerold Lorenz, Interfer Edelstahl
The topic of financing is very important for the steel industry, particularly if a steel trading company grows rapidly, as is the case with the Interfer Edelstahl Group.
The company, whose head office is in Karlsruhe, has been operating in the steel trade for many years. For many years, they have been importing goods from Asia destined for the European market. As a result of the financial crisis in 2008/2009, the business became international trading in all kinds of steel products and semi-finished goods. Today, the Group is represented by diverse subsidiaries located across many countries. Both their clients and partners are impressed by the Group’s well-defined business profile.
Financing and credit insurance complementing each other
For nearly thirty years, the Interfer Edelstahl Group has had consistent banking partners where the relationship has worked seamlessly – although, in general, it has been a difficult time for the steel industry to find adequate financing. As a result, Managing Director, Gerold Lorenz considers it particularly important to be diversified where this subject is concerned: expansion and development of new businesses constantly requires new financial conditions.
Additionally, Interfer has always operated on the basis that the business should be adequately covered: either through guarantees or credit insurance. At the same time a credit insurance policy, with regard to content, needs to meet specific requirements in order to ensure that any potential loss will be settled.
That’s where GFL came into play. “We have known Mr. Sarafin for a long time through his time at Euler Hermes” explains Gerold Lorenz, “but we were working with another company at that point”. During the first discussion with GFL it became clear: “GFL are highly competent in many areas and create tailor-made solutions in addition to having access to an extremely good network.”
What has been implemented?
As a first step, the fundamental task involved implementing further financing options. The GFL experts achieved this through use of specific purchasing lines. Subsequently, Factoring solutions in Germany, UK, USA and Austria were implemented in order to further expand working capital. As a result, the financing framework could be extended.
Furthermore, GFL reviewed the existing credit insurance policies and adjusted significant points. In connection with this long-tail claims, which had been previously neglected, were then processed resulting in substantial payments from insurers. In addition, the credit insurance solutions were allocated across various providers, representing a considerable benefit to the Group.
“Today GFL is our ‘go to’ advisor for most credit insurance and financing questions. We discuss new options, receive important updates and developments and as a result are always kept up-to-date”, says an extremely satisfied, Gerold Lorenz. “We have really benefited from the collaboration and are looking forward to upcoming discussions about our future challenges.”