Cirralto Ltd has 
entered into an agreement with Chinese importer James Tyler for A$2 million in Buy Now, Pay Later (BNPL) funding per month to facilitate better trade partnerships between Australian fresh produce providers and Chinese retailers, targeting large chains like Aldi, Costa Coffee, Costco Wholesale, Starbucks and City Shop.
The partnership will allow Australian fresh food producers to export with lowered risk, offering upfront payments and controlled custom clearing, enabled through the integration of Fresh Supply Co’s operational data specialisation.
Australian producers are in essence being given the opportunity to access a cash flow injection to support potential increased production and gaining higher certainty over their volume orders and predicted cash flow.
The BNPL funding will be provided by Cirralto with all payments and collection services to be processed and delivered through Cirralto's core product, Spenda.
Supporting Aussie farmers
“As a company, we have a strategic focus on the agricultural segment in Australia, not only because it is a great market opportunity for us as a company, but because we recognise the importance of the industry to Australia and want to facilitate improvements in trade so that Aussie farmers can get paid quicker,” Cirralto CEO and Spenda managing director Adrian Floate said.
“The addition of James Tyler as a lending customer further strengthens our relationships with Mastercard and Fresh Supply Co. We are extremely excited by the potential of these types of opportunities to drive improvements in food distribution and cross-border trade whilst also generating sustainable revenue.”
Cirralto believes Australian fresh produce producers are under-utilising their farming potential due to uncertainty in buyer demand, limiting their earnings.
CRO’s partnership with James Taylor aims to flip this relationship by giving Australian producers direct access to major Chinese fresh food platforms along with pre-determined sales volume.
Providing supply chain certainty
“Working with Cirralto to provide extended BNPL to the Australian export market will provide certainty to the whole supply chain,” James Tyler co-founder James Hutchinson said.
“Because of our unique business structure, we are able to aggregate demand in China for Australian produce and help Australian producers solve their cash flow issues with upfront payment at the start of the season, a time of the year that is always a huge challenge for producers who are faced with high operational costs but no revenue for many months.
“This new partnership provides greater transparency and certainty to both Australian producers and Chinese buyers.”
China remains Australia’s largest two-way trading partner, representing almost a third of our global trade in 2019.
The Department of Foreign Affairs reported that recent economic instability and cash flow pressures, largely driven by the COVID-19 pandemic and exacerbated by trade tensions between the two countries, had reduced trade volume by 3% in 2020.
For more information: cirralto.com.au