CUABAR Barcelona Financial Solutions

Cuabar Barcelona Financial Solutions is an independent division within our group, which is specifically created to offer credit facilities to our clients on their imports.

Due to our agreements with different banks, credit institutions or insurance companies, we have access to a wide variety of credit facilities which we can transfer to our clients. The most outstanding of them is the chance of chosing payment periods up to one year time providing a letter of credit opened through one of the banks we cooperate with.

We would like to highlight that the credit facilities that Cuabar Barcelona Financial Solutions offers have no minimum purchase amount while the maximum credit limit can be very high. So, any type of company can have access tothe oportunities we offer.

This particular feature allows our clients to finance their daily operations with no financial cost just by buying Cuabar Barcelona products. This is possible as our clients get paid for their sales of our products cash (or in a very short period of time) while they do not have to pay for those very same products until up to 360 days from the shipment date. Thus, our clients can devote that available cash flow to pay salaries, operacional expenses or even to buy other products to other companies, without the need for any capital investment other than opening the first LC to Cuabar Barcelona using our financial soluctions.

The very long payment terms that Cuabar Barcelona Financial Solutions offers, allow our clients to fuel their total sales amount at an exponential rate as well as to rocket the return of their investments as they can work with an important capital without signing high interest rate loans with local banks.

Last but not the least, Cuabar Barcelona Financial Solutions advantages are already included when purchasing our products.

For the purposes of mere orientation and, in order to explain with some numbers the credit facilities offered by Cuabar Barcelona Financial Solutions, lets give as an example for an import of 150,000€ with a transit time and a customs clearance time of 45 days, plus 30 more days for executing the sales, at a profit margin of a 30%.

Purchase: 150,000€.

Cash collected from sales after 75 days: 214,000€.

This 214,000€ can be reused to buy new products to any supplier, without any need to open L/C's as our clients alredy have cash at their disposal. Thus, they are even able to prepay to their suppliers if they get some advantage with it.

As a result, after 75 more days, the 214,000€ obtained from the second purchase will turn into 306,000€. That is the capital our clients will have after 150 days from the initial operation.

And, if we keep on with this progression, after a year, when time to actually pay the first purchase comes, our client would have created a positive cash flow of 822,000€ after selling all the products.

That means that our clients would have earned a net amount of 672,000€ after paying the first LC using Cuabar Barcelona Financial Solutions. All that with no capital investment and only two requierements: opening a single letter of credit at the very beginning of the process and capacity of selling high demanded products at local market.