ZIZIN is an inconspicuous yet successful company from Kysuce. It has been manufacturing and selling products made of recycled paper and cellulose for almost 15 years – toilet tissue, towels, paper towels. The company customers mostly consist of manufacturing companies, which use them for their employees, or facility management companies, which manage shopping centres or business centres. Long-term experiences have brought ZIZIN a know-how thanks to which it is able to manufacture a successful product, with a price which can compete with multinational players.
The demand for the company products is growing every year and ambitious owners approached us with a need to create an ideal financing model. There were several development plans. Financing required the creation of a relatively complicated resource drawing structure.
The increased production capacity created pressure on the frontloading of input material. Up to now, the company has been financing it from its own resources, which was expensive and limited other areas of the company operation. Therefore, we proposed a short-term operating overdraft based on a detailed business plan that we had prepared.
At the same time, it was necessary to expand operation and technology. Financial model showed us that a long-term bank loan was an ideal tool.
In order for ZIZIN to buy the input material from an Italian supplier, they needed guarantees, which we helped them to approve in the form of a bank payment guarantee.
The greatest challenge, however, was the purchase of a new technological line from China. We created a combination of a bank loan partially covered by JEREMIE fund, which helped to reduce the interest rate. Moreover, financial transfer was made in deposits directly to the supplier’s account in China.
The final piece of the puzzle was to assist them with acquiring a COVID loan, which is at 90% secured by state guarantee.