“As a company, we are strategically focused on the agricultural segment in Australia, not only because this is a great market opportunity for us as a company, but because we recognize the importance industry for Australia and want to facilitate better trade. so Australian farmers can be paid faster, ”said the CEO.
Cirralto Ltd (ASX: CRO) has reached an agreement with Chinese importer James Tyler for A $ 2 million Buy Now, Pay Later (BNPL) per month financing to facilitate better business partnerships between Australian suppliers of fresh produce and Chinese retailers, targeting big chains like Aldi, Costa Coffee, Costco (NASDAQ: NA: COST) Wholesale, Starbucks and City Shop.
The partnership will enable Australian fresh food producers to export with reduced risk, offering up-front payments and controlled customs clearance, made possible through the integration of the operational data specialization of Fresh Supply Co.
In essence, Australian producers have the ability to access a cash flow injection to support a potential increase in production and gain greater certainty about their volume orders and expected cash flow.
Support Australian farmers
“As a company, we are strategically focused on the agricultural segment in Australia, not only because this is a great market opportunity for us as a company, but because we recognize the importance industry for Australia and want to facilitate better trade. so Australian farmers can get paid faster, ”said Adrian Floate, CEO of Cirralto and Managing Director of Spenda.
“The addition of James Tyler as a lending client further strengthens our relationships with Mastercard (NYSE: MA) and Fresh Supply Co. We are extremely excited about the potential of these types of opportunities to improve food distribution and cross-border trade while also generating sustainable income.
Cirralto believes Australian fresh produce producers are underutilizing their agricultural potential due to uncertain buyer demand, which limits their income.
CRO’s partnership with James Taylor aims to reverse this relationship by giving Australian producers direct access to major Chinese fresh produce platforms as well as predetermined sales volume.
Ensuring the security of the supply chain
“Working with Cirralto to provide extended BNPL to the Australian export market will bring certainty to the entire supply chain,” said James Tyler co-founder James Hutchinson.
“Due to our unique business structure, we are able to consolidate demand in China for Australian products and help Australian growers resolve their cash flow issues with an upfront payment at the start of the season, a period of l year which is still a huge challenge for producers facing high operating costs but without income for many months.
“This new partnership provides greater transparency and certainty for Australian producers and Chinese buyers.”
China remains Australia’s largest bilateral trading partner, accounting for nearly a third of our global trade in 2019.
The Foreign Ministry reported that recent economic instability and cash flow pressures, mainly due to the COVID-19 pandemic and exacerbated by trade tensions between the two countries, had reduced trade volume by 3 % in 2020.
This agreement, supported by the collection and integration of operational data from the Fresh Supply Co network into the Mastercard Provenance solution, is designed to ultimately create stronger business relationships, better trust and greater transparency between Australian producers and Chinese buyers.
Fresh Supply Co CEO and Co-Founder David Inderias added: “As a supply chain digitization company, we strive to provide the farm business with transparency throughout the chain. supply. Working with James Tyler combines the collective knowledge and resources of all parties to facilitate better access to working capital for the agricultural industry.
The partnership aims to leverage Cirralto’s blockchain and supply chain knowledge to deliver improved access to trade finance, improved efficiency and cash flow, trust and credit decisions based on data.
The deal was reached through sponsorship agreements implemented in July 2021 with Mastercard Asia / Pacific Pte. Ltd, a wholly owned subsidiary of Mastercard Inc, and Fresh Supply Co Pty Ltd.
Under the terms of the deal, James Tyler will access BNPL funding with an initial limit of AU $ 2 million.
The agreement will be provided on a rolling period subject to a minimum of 6 months, which may be terminated thereafter, subject to a 3 month notice of termination. A condition precedent is the execution of the final documentation of the full agreement which is expected to take place this week.
The exact amount of revenue from this deal is not known at this time as the revenue is usage dependent.
It is expected that this financing product will allow James Tyler to increase his export volumes in the short term, which should have a significant impact on Cirralto’s revenues.
Cirralto Ltd is a feature-based payment company capable of owning transactions from any customer up and down the value chain. Thanks to its flagship product, Spend a, Cirralto offers a fully integrated digital payment and business software solution that enables businesses to transform with fast, error-free digital efficiency.
Cirralto provides industries with a wide range of business-to-business (B2B) payment services, digital trading software and integrated solutions.
James Tyler is a supplier of fresh produce sales and logistics in China, founded in 2015 by majority shareholders Tyler Ye and James Hutchinson. They are working with Australian farmers and distributors to provide a gateway for trade directly to the Chinese consumer.
China is now the second largest purchasing market for imported food products, worth a total of around A $ 150 billion.
It offers three key services:
- Product activation – product registration in China;
- Logistics activation – implementation of an end-to-end cold chain solution; and
- Sales Activation – working as a business partner to develop a strategy and enable sales in China.
Fresh Supply Co acts as a specialized data layer in capturing operational data and making it available to the financial industry. Continuous data feeds enable continuous assessment of credit risk, minimization of exposure, and automated triggering of payments based on meeting specific milestones or criteria.