Supplier Payment Finance: Solving Real Problems for Chocolate Manufacturers

Financing & FX support for manufacturers navigating volatility, seasonality, and global supply chains.

1. Industry Context: Why Chocolate Companies Are Under Pressure

• Cocoa prices have surged 6× between 2022 and 2024 due to crop disease and climate‑driven harvest failures.
• Extreme price volatility (20–60% annually) is now the norm in cocoa markets.
• Manufacturers face shrinking margins, cash‑flow strain, and higher working capital needs as raw material costs spike.
• Currency fluctuations (EUR/USD, EUR/GBP, EUR/XOF, EUR/BRL) directly impact:
  
  • Cocoa purchases (often priced in USD)
  • Packaging imports
  • Export revenues
• Many chocolate makers, especially premium brands like some who are our clients currently, operate with seasonal sales cycles (Christmas, Easter, Valentine’s Day), creating liquidity gaps.

2. The Core Problems Ebury Solves for Chocolate Companies ‍

Problem 1: Raw material price spikes create sudden liquidity needs

• Cocoa, sugar, dairy, and packaging costs can increase sharply.
• Suppliers often demand shorter payment terms during volatile periods.

How Ebury solves it

• Pay suppliers upfront (strengthening supply relationships)
• Extend their own payment terms to 150 days
• Smooth cash flow during seasonal peaks

Problem 2: Cocoa suppliers require fast, reliable payment

• Many cocoa suppliers are in West Africa or LATAM and expect immediate settlement.
• Delays risk losing allocations of high quality beans.

How Ebury solves it

• Ebury pays suppliers in their local currency, on time, anywhere.
• Chocolate manufacturers gain:
  
  • Priority access to raw materials
  • Better pricing through early payment discounts
  • Reduced operational friction

Problem 3: Cocoa is USD denominated; sales are often in EUR/GBP

• A weak EUR or GBP increases input costs dramatically.
• FX swings can wipe out margins on premium chocolate lines.

How Ebury solves it

• Forward contracts to lock in cocoa purchase FX rates.
• Multicurrency accounts to manage USD, GBP, CHF, XOF, BRL flows.
• Automated hedging strategies aligned with seasonal sales cycles.

Problem 4: Premium chocolate brands export heavily

Exporting to the UK, US, Middle East, and Asia introduces:

• FX risk
• Slow settlement
• High banking fees

How Ebury solves it

• Fast, low cost international payments.
• Local collection accounts to receive payments in foreign markets.
• FX risk management for predictable margins.

Problem 5: Cash‑flow peaks and troughs around holidays

• Production ramps up months before revenue arrives.
• Traditional banks rarely finance seasonal inventory.

How Ebury solves it

• SPF bridges the gap between:
  
  • Production costs (now)
  • Sales revenue (later)
• Enables chocolate makers to scale production for Christmas, Easter, Valentine’s Day, etc.

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3. Why Chocolate Companies Choose Ebury