Networking distributor Westcon has replaced its European vendor-based inventory financing facility with a $200m agreement with HSBC Invoice Finance.
The distributor said that the new four-year invoice financing facility will consolidate and replace existing flooring arrangements on more favourable terms.
Although the firm will increase its net debt due to changes in how the facility is reported, Westcon plans to use the proceeds for supplier prompt-pay arrangements, which should increase its profitability.
"This agreement reinforces the fact that our principal lender continues to recognise Westcon Group's financial strength and our ability to meet our growth commitments," said Westcon Europe CFO Richard Hodgetts.
"In addition, this arrangement reifnorces our financial strength, which is a key value to our vendors," he added.