Background

Our partner was a rapidly expanding medical equipment distributor operating in Myanmar's emerging private healthcare market. The distributor specialized in diagnostic imaging systems and had identified significant growth opportunities within Myanmar's developing private hospital sector. These healthcare facilities were experiencing increasing patient volumes with higher disposable income, creating demand for advanced medical equipment to attract patients seeking quality medical services. Access to reliable diagnostic and treatment capabilities was limited in Myanmar at that time, making quality equipment availability a significant competitive advantage for hospitals.

The Challenge

The distributor faced several critical obstacles that were preventing successful market penetration:

• ‍Restrictive Local Banking Environment: Myanmar's banking sector relied heavily on collateral-based lending, with land and buildings accounting for nearly 80% of collateral requirements. Local lending was primarily structured as overdrafts rather than term loans, making equipment financing particularly challenging. Local interest rates were prohibitively high, with lending rates reaching 14-16% during this period, making equipment financing unaffordable for both our distributor and many private hospitals.

• ‍Working Capital Constraints: The distributor needed to offer extended payment terms to compete effectively, but lacked the financial resources to maintain inventory and cash flow while providing customer financing to hospitals.

• ‍Customer Payment Challenges: Private hospitals required longer repayment periods to manage cash flow effectively, but existing local financing options were structured primarily as short-term overdrafts rather than appropriate term financing for capital equipment purchases.

The Solution

Philips Capital's Smart Export Financing Approach

Working at Philips Capital, Xander Vissering developed together with the Philips HealthTech Sales team a comprehensive export financing solution that addressed both immediate financing needs and long-term market positioning:

• Medical Equipment Optimization: The sales team worked closely with the distributor to identify the most suitable medical equipment for the private hospital market focusing on basic general healthcare requirements.

• ‍Cost-Effective Configuration: Rather than over-specifying systems, we positioned medical equipment with essential functionalities at the most optimal price points, making advanced healthcare equipment technology accessible to a broader range of private hospitals.

• Comprehensive Training Support: We facilitated local training programs to ensure hospitals could maximize their investment and deliver superior patient care.

‍Flexible Export Letter of Credit Program

Xander Vissering structured an export financing solution backed by Letters of Credit that provided:

• Bullet payment terms to the distributor providing maximum cash flow benefit to the distributor
• Competitive interest rates substantially below Myanmar's domestic market rates
• Multi-bank participation to ensure continuity of the program and funding availability

This structure enabled the distributor to preserve its working capital and allowed the distributor to extend payment terms to hospitals via attractive financing packages while maintaining operational liquidity.

At the same time for Philips credit exposure was mitigated in full with the option to discount these transactions on a non-recourse basis via third party banks and thus limiting the impact on its cash flow.

Results

Our partnership led to the following successes:

• Established Market Leadership: We secured the majority of private hospital medical equipment projects during the financing program period.

• Created Strong Competitive Advantage: Our financing solution differentiated us from competitors who previously dominated the market in Myanmar.

• Expanded Healthcare Access: We enabled multiple private hospitals to upgrade their medical capabilities, improving patient healthcare access.

• Enabled Sustainable Growth: We established long-term relationships with major private healthcare providers, creating recurring revenue opportunities.

Client Testimonial

"Xander Vissering structured an export financing solution that fundamentally changed our competitive position in Myanmar's private hospital market. The partnership with our distributor was instrumental in establishing our market leadership and enabling us to bring advanced healthcare equipment technology to hospitals that previously couldn't access it."

— Hugo Luik, Former Managing Director, Philips Myanmar

Conclusion

This case study demonstrates how smart export financing can transform market dynamics in emerging economies with challenging banking environments. By addressing both distributor liquidity needs and customer payment constraints, the smart financing structure enabled sustainable business growth while advancing healthcare accessibility. The success in Myanmar's restrictive banking environment showcases the potential for well-structured export financing solutions to create competitive advantages and drive measurable results.

The multi-stakeholder approach—combining equipment optimization, training support, and smart financing structures—illustrates how comprehensive export financing solutions can unlock market potential that traditional approaches cannot address.

As the founder of Orange Capital Solutions, Xander Vissering now brings this proven expertise in cross-border project structuring and export financing to Dutch exporters seeking to overcome similar challenges in international markets.

‍Ready to explore export financing for your distributors?

Contact Orange Capital Solutions to discover how smart financing solutions can accelerate your international growth while preserving working capital for business expansion. Our proven expertise in cross-border project structuring can transform financing challenges into competitive advantages for exporters selling capital equipment through distributor networks worldwide.

‍Contact us at info@orangecapital.solutions to schedule your export financing consultation.