Name: Verde Wood International
Locations: Carrboro, North Carolina
Business profile: Wholesale exporter of kiln-dried hardwood lumber
Business goal: Source the highest quality U.S. hardwoods to distribute internationally
Verde Wood’s Smart Growth Story:
For more than 25 years Verde Wood has been building long-term relationships with the top producers of hardwood lumber in the U.S. and selling that lumber to their primary markets—Asia, Europe and the Middle East. With the help of SunTrust, Verde Wood has grown significantly over the last few years, which has allowed the company to better obtain open relationships with their markets, as well as reduce export restrictions they dealt with in the past.
The SunTrust OneTeam Approach in Action:
The relationship between SunTrust and Verde Wood began in 2014, and the bank recognized how its global trade group and SBA platform could help Verde Wood foster growth. The SunTrust team put together an uncommon structure that Verde Wood was not aware of—an export working capital line of credit with an SBA guarantee. This was extremely useful for Verde Wood because a conventional line of credit is unable to support foreign receivables, while an export line of credit can.
Since Verde Wood focuses on overseas sales, this $1M line of credit helps manage a cash flow gap at a relatively low cost. When Verde Wood pays their suppliers, they can pay within 10 days and earn a discount of 1 percent, or pay the full amount within 30 days. However, the time it takes Verde Wood to get paid by their customers can be anywhere from 30 to 60 days, causing a gap in cash flow. Having the additional capital available at a reasonable cost helps cover that gap.
“SunTrust came up with a product that really works for us.”
—Mark Hopper, Principal of Verde Wood International
The SunTrust OneTeam Solution:
From day one, SunTrust understood the financial support Verde Wood needed in order to grow and remain successful. The credit products allow both Verde Wood and SunTrust to feel confident that payments are going to be received before the goods are released at the port, minimizing the risk overall.
Species Verde Wood International Offers
Pacific Coast Maple
SunTrust’s proactive approach to financing will allow Verde Wood International to continue to grow and have more open relationships with their markets.