• Growing my Business
    • Seeking New Opportunities

How to Stimulate the Growth of a Local Company

  • Article

When Jovi Sports undertook a strategic shift in its operations about six years ago, demand for the company’s outdoor clothing and accessories skyrocketed.

However, the rapid growth strained the business as team members juggled a record number of purchase orders and worked to manage liquidity. To capture this opportunity, Jovi Sports needed a bank that could partner with them to solve their financing challenges.

In 2007, Montreal entrepreneur Mark Victor started a business specializing in the distribution of sporting goods and winter accessories. As the business grew, it evolved from being a simple wholesale operation, distributing some of the best brands in the industry, to include designing its own collections of outdoor clothing.

Almost 16 years later, the business has boomed. Jovi Sports now boasts supply offices in many Asian countries. Its products are distributed by retail and e-commerce giants and are beloved by specialty shops across North America.

To be well positioned in the face of the challenges that come hand in hand with expansion, this Lachine-based business partnered with HSBC.

High-volume Challenges

In terms of financing, Jovi Sports faces specific challenges.

“When we launched our new business plan about six years ago, it was difficult to receive large orders from customers, and sometimes we had decline them because we didn’t have the financing or capacity to fill them,” explains Charles Ewing, the company’s Chief Financial Officer.

Jovi Sports’ seasonality also brings its own challenges. While distributor sales focus on the year’s last trimesters, the inventory must be ready to be upstream in the cold season.

“Jovi needed financial products with the flexibility to support this cycle of sales conversion and to alleviate the pressure on cash flows,” says Glenn Marcotte, AVP, Global Trade and Receivables Financing at HSBC Bank Canada.

HSBC provided a tailor-made financing structure to stabilize the company's cash flow by financing the initial supply needed to complete an order, and then reinjecting the funds once the order has been paid for by a Jovi Sports' customer.

Beyond custom-made financial products, Jovi Sports also benefitted from the in-depth expertise of the bank’s expert team. “Every time we have questions, or we look at our forecasting, we just need to call Glenn to better understand the products or to readjust our game plan,” says Charles Ewing.

Before, the financing for high-volume orders was a constant preoccupation. Now, we have the confidence to meet high demand and to support our growth. We sleep at night!

Charles Ewing | Chief Financial Officer, Jovi Sports

Bank on humans before numbers

Jovi Sports and the HSBC team have worked closely together to establish a deep relationship.

“It’s essential to understand the client’s business model and cycle,” explains Glenn Marcotte, “But you must also be able to look beyond the business’ financial health.” What are its future aspirations? How are the employees doing? Which curve balls could possibly destabilize it?

For example, when a large port was paralyzed by a strike, HSBC experts took the lead to ensure that merchandise in transit wasn’t affected by the situation and that Jovi Sports’ operations were insulated from the turmoil.

“Glenn called me immediately,” explains Charles Ewing who, despite being based in Asia, communicates regularly with his Montreal-based finance team.

In just a short period of time, Jovi Sports and HSBC have established a strong professional partnership —one that will continue to evolve and help Jovi thrive in the years to come.

“We are proud to be a part of Jovi’s success,” concludes Glenn Marcotte.

To learn more about HSBC Trade Solutions, click here

Need help?

Get in touch to learn more about our banking solutions and how we can help you drive your business forward.