Trade credit is one option, but many others
Whether it's the best option depends on the terms. I actually think a working capital revolver is a better alternative, particularly given the still low-level of global interest rates (particularly in Europe, nothwithstanding the recent spike in the 10 yr UST). For example, he could obtain a credit facility backed by A/R and Inventory (I've worked on a number of these over my career) at Libor + 300-400bps. He could then hedge the interest rate risk with a fixed for floating swap and lock in a favorable rate. I can understand how all of this would have been difficult with Nestbuilder, but that constraint is obviously gone.
Anshu used the word "syndicate" when describing a capital raising option. That term is typically used in the bank loan area where banks form a syndicate to share the risk of the underlying loan. We'll see if I'm right on that. As I've said in the past, a $20mm revolver could probably be turned over 6x in a year assuming 60 days receivable. Even assuming his DSOs are 90 days (well above current levels), he'd still, in theory, be able to generate $80mm in revenue. Once he starts generating cash, the banks could expand the facility and the company would be off to the races.
As for the growth rates, I wouldn't get too hung up on them on a historical basis. This isn't a software company with essentially zero marginal cost and no inventory requirements. It depends on capital, but it should ultimately be a good credit given it's in the food business operating in relatively high per capita GDP geographies.
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