AGM Electronic Vertrieb was founded in 1994. The company deals in mobile phone accessories – especially mobile phone cases. The goods are mainly purchased from suppliers abroad and sold via electronics stores throughout Germany and online. In some cases there are very long payment terms with correspondingly high working capital requirements. A current account line from a local bank and factoring financing were used for financing.
MMC Finance was commissioned by AGM to find a new factoring partner and to call in another bank to cover the increased financing requirements.
Within a few weeks MMC Finance was able to set up a new factoring solution based on a two-contract model. First of all, a trade credit insurance was concluded, which bears the risk of insolvency of the invoice recipient. Subsequently, MMC selected a factoring company to finance the period between invoicing and payment.
Furthermore, MMC Finance has organized a short-term loan agreements with different terms via two innovative banks (FinTechs).