Sun King x Verto: Driving Global Solar Energy expansion Through Effective Cross-Border Payments

Challenge

Sun King faced substantial cross-border payment hurdles due to the nature of their product development and manufacturing process. Their products are conceptualised and designed by an in-house R & D department, manufactured in China and distributed globally to 14 locations, with 10 of these locations in Africa. They also trade in inter-company transactions with their subsidiaries. To support these operations, Sun King engages in large volume cross-border transactions to facilitate manufacturing and shipping of their products.

The nature of Sun King's operations, including design and manufacturing, requires substantial financial resources. Kenya, being a critical hub for Sun King's African operations, experienced a liquidity bottleneck amid a global dollar crisis, restricting Sun King’s access to dollars through local banks. The repercussions of this financial constraint had a direct impact on Sun King's day-to-day business operations. 

Also, the financial requirements needed to match the scale of their operations, ranging from $500,000 to $2 million, far exceeded the limited funds offered by local banks, typically between $10,000 and $50,000. Accessing large sums of money was a crucial necessity for the Sun King due to the volume of their manufacturing operations. Additionally, Sun King faced pricing volatility and had to navigate a bureaucratic process within the treasury to negotiate FX prices. 

How we helped

Verto addressed Sun King's challenges by providing access to liquidity that met their financial requirements from $250,000 to up to $2 million. Unlike local banks, Verto facilitated this liquidity requirement in one or two tranches at a more favourable price point.

To shield from rate volatility, Sun King took advantage of Verto’s rate lock feature. Once Sun King secured their exchange rate, they could fund their wallet at a later date with the locked rate, offering a protective financial mechanism.

Additionally, Verto streamlined fund transfers between at least four countries where Sun King has subsidiaries through seamless wallet-to-wallet transfers. Verto’s wallet-to-wallet facilitates safe, instant transfers in 49 global currencies across Africa, Asia, Europe, Oceania and the Americas on one platform. This solution allowed Sun King to move funds between countries, for example between Kenya and Tanzania or Tanzania and the United States without the need for physical visits to a bank.

Outcome

With Verto's solutions in place, Sun King was able to transform their cross-border payment processes. The significant increase in access to multiple foreign currencies thanks to Verto addressed Sun King's liquidity challenges and facilitated smoother operations. The rate lock feature not only shielded Sun King from FX rate volatility but also instilled a sense of financial security, allowing for better planning and resource allocation.

Also, Verto's seamless wallet-to-wallet transfers between Sun King's subsidiaries in multiple countries streamlined financial transactions, reducing the dependency on traditional banking channels. This operational efficiency allows Sun King to focus on core business activities rather than navigating bureaucratic financial processes.

With a solid cross border payment partner in Verto, Sun King is able to strengthen their operations and continue in their mission to bring sustainable energy solutions to more countries around the world.