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.