How EFSI benefits SMEs in Europe - Cibank case study: Megatrade Express (Bulgaria), Retail, sanitary goods

Established in 2000, Megatrade Express’ main activity is the import and distribution of sanitary – hygienic goods and supplies. They rely on various wholesale and retail distribution channels like supermarket chains, wholesalers and distributors in the country, hotels, restaurants, coffee shops, commercial buildings and more.

More recently, however, Megatrade Express expanded their commercial activities significantly. In 2010, they began their own production of WC fresheners and napkins by simply buying a second-hand machine. A year later, they expanded production and purchased a new machine for the production of toilet paper and kitchen rolls, and in 2012 the company bought a new machine for producing towels.

Since its inception, Megatrade Express has aimed at adjusting its product range according to market requirements, responding to clients’ demands while maintaining a stable pricing policy. They maintain their own logistics throughout the whole country, and pride themselves on regular, timely supply mechanisms.

The last year has seen a significant boost in sales that can be attributed directly to the fact that in January 2016 Megatrade Express took out a working capital loan from Cibank, backed by an EU and EIF guarantee. This loan made it possible to finance the purchase of new raw materials in order to further expand the range of manufactured products and thus satisfy growing customer demand. This has had a very positive impact on Megatrade Express’ reputation as reliable partners and suppliers and has been reflected in a subsequent rise in turnover.

As the company’s President, Vesselin Banev Popminchev, points out: “The funding allowed us to reach impressive growth rates. We have hired ten new employees since the beginning of the year and we are looking to hire more. With the working capital available early in the process, we are more able to respond rapidly to our customers’ demand and deliver quality finished products in a short timeframe.”

This loan was made possible by the Investment Plan for Europe, which aims to generate new investments by facilitating access to finance for small and medium-sized enterprises.

Company: Megatrade Express (Bulgaria)

Type of business: Agriculture

EIF financing: COSME LGF, EFSI

Financial intermediary: Cibank

For further information about EIF intermediaries in Poland, please refer to: http://www.eif.org/what_we_do/where/bg