Founded in 2005, Twist Tobacco got off to a flying start. In no time, the East Flemish producer of rolling tobacco grew into a leading player, with customers the world over, from Russia to Japan. Twist Tobacco called on the services of Euler Hermes to support its international growth. The tobacco manufacturer uses sureties as a guarantee for the purchase of the mandatory tax stamps to be affixed on tobacco products. This guarantees the Treasury a minimal recovery of the excise payment should the company go bankrupt.
Euler Hermes offers excellent risk coverage at a competitive rate
NEED FOR EXPERTISE
Managing director Johan Vandermarliere: “Having grown rapidly, we were facing very high rates for our bank guarantees. In hindsight, those bank guarantees had not been a good choice. The specific material in our niche meant that thorough knowledge was required. We found that expertise at Euler Hermes. They provide us with excellent risk coverage at a competitive rate.”
FAST ACCEPTANCE OF UNDERWRITING
Twist has now been working with the credit insurer for five years and Vandermarliere has no regrets concerning this decision. He mainly remembers how seamlessly the existing guarantees were underwritten Moreover, with an AA credit score, Euler Hermes enjoys the full trust of excise officials. Johan Vandermarliere: “As a result, the customs authorities quickly accepted the underwriting. And last year we increased the budget of our guarantee once again. What could sometimes take up to three months at our bank was settled in a few days.”
THE RIGHT PARTNER
Vandermarliere is more than happy to sing the praise of Euler Hermes: “Because of their size and expertise, they are the right partner to support our export needs. Sureties are part of their core business and that’s obvious. They ask the right questions and monitor our figures closely.” The tobacco producer therefore hopes to continue to grow with Euler Hermes as a financial partner. “It is great for both parties when they evolve together. And for an insurer, a thriving company like Twist is certainly good news: they run minimal risk with us. In other words, a real win-win partnership.”