CaloCurb is a New Zealand developed nutraceutical business focused on natural appetite management. Its core product is a plant based, clinically validated GLP 1 activating supplement made from hops grown in Nelson. The hop residue is extracted in Australia and the finished capsules are manufactured in the United States by Lonza. The product is regulated in the United States under the Dietary Supplement Health and Education Act and holds the required approvals from the U.S. Food and Drug Administration (USFDA).

Over the past year the company has secured several significant distribution agreements in the United States across direct to consumer, practitioner and wholesale channels. As a result revenue is forecast to increase materially in the coming financial year.

The Challenge
CaloCurb operates with a long cash conversion cycle. Raw hops are purchased in Nelson during the seasonal harvest and then shipped to Australia for extraction into liquid form before being exported to the United States for encapsulation and final packaging.

Supplier terms require meaningful payments in advance and on delivery, while US customers typically operate on 30 to 45 day terms. Inventory levels also need to remain elevated due to seasonal supply and batch production cycles.

As volumes were forecast to increase, the working capital gap was expected to widen. The company required additional funding to support higher inventory levels, increased purchase orders and receivables growth without placing pressure on day to day operations.

The Solution
To support this next stage of growth CaloCurb worked with the Bank of New Zealand (BNZ) and, with support from New Zealand Trade and Enterprise (NZTE), approached New Zealand Export Credit (NZEC) for a Loan Guarantee.

NZEC partnered on a fifty-fifty risk share basis with the bank, enabling approval of the company’s first significant working capital facility. The guarantee process was streamlined and a decision was made within five working days of submission.

The facility was structured around receivables and confirmed purchase orders, aligning funding with export sales growth while addressing the bank’s credit considerations.

The Result So Far
With the facility in place CaloCurb is able to bridge its extended cash conversion cycle and release working capital tied up in receivables and purchase orders, allowing the business to fund larger inventory positions and scale confidently in the United States.

The structured, fit-for-purpose working capital support has allowed the business to pursue its current growth trajectory while maintaining disciplined financial management and supply chain stability.

“As we scaled our US distribution, it was important to establish a working capital facility aligned with our export growth and supply chain cycle. Following an introduction from NZTE, BNZ worked with NZEC to structure a facility that provides the flexibility and headroom required to support our expansion. The process itself was efficient and commercially focused. The facility has given us the confidence to pursue sizeable opportunities for continued growth in the United States market knowing we had the working capital support.”

Sarah Kennedy, Founder & CEO, Calocurb®
“NZEC backing Calocurb’s working capital facility has been a big enabler, providing confidence and meaning the team has been able to focus efforts on aggressively driving sales and marketing efforts in the U.S. It’s a great example of NZEC removing roadblocks to support an innovative business to grow faster in a competitive category.”

Terry Teoh, Regional Manager and Customer Manager, New Zealand Trade and Enterprise
“Working with NZEC allowed us to provide CaloCurb with a facility tailored to their growth plans. The process was streamlined and commercially focused, giving us confidence to support their expansion into the US market.”

Dean Harris, Trade Specialist, BNZ Partnership Banking
“Highly innovative companies like Calocurb need access to trade finance to stay nimble, capture growth opportunities and fulfil larger orders. It was great to work alongside Calocurb, NZTE and BNZ to help position the business for its next stage of growth.”

Nitin Chib, Senior Business Originator, New Zealand Export Credit.

Source: https://exportcredit.treasury.govt.nz/