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Trade Credit Case StudyWorking Capital Unlocked

$25M bank-assignable credit insurance

Unlocked working capital for a Kenyan fuel distributor

Cash bundles

Case Highlights

$25M
Credit Insurance
A-Rated
Underwriter
Kenya
Market Focus

Client Profile

A leading petroleum distributor in Kenya with significant exposure to the power generation sector, specifically supplying fuel to a major Kenyan power plant. The client required enhanced working capital solutions to support business growth.

Challenge/Situation

The client faced significant constraints in their working capital lines due to:

Large single-buyer exposure concentration
Stringent lender requirements limiting available credit facilities
Need for continuous fuel supply to maintain power generation operations

Key Insights

This case demonstrates the power of simple, bank-friendly risk transfer solutions

Converting receivables into borrowing base enables business growth

Managing credit risk exposure effectively through structured insurance

Working capital solutions tailored to industry-specific requirements

Our Solution

We arranged USD 25 million in trade credit insurance with an A-rated underwriter, structuring the policy to be assigned directly to the client's bank. This created a bank-friendly risk transfer mechanism that converted receivables into borrowing base.

Structured $25M trade credit insurance policy with A-rated underwriter

Designed policy to be directly assignable to the client's lending bank

Created bank-friendly risk transfer mechanism converting receivables to borrowing base

Enabled continuous working capital flow for uninterrupted fuel supply operations

Solution Provided

We arrangedUSD 25 million in trade credit insurance with an A-rated underwriter, structuring the policy to be assigned directly to the client's bank. This created a bank-friendly risk transfer mechanism that converted receivables into borrowing base.

Results Achieved

Enhanced Liquidity

Bank unlocked credit facilities

Stabilized Cash Flow

Consistent working capital maintained

Business Continuity

Reliable fuel supply continued

Risk Mitigation

Protected against default risk