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Founded in the Bulgarian city of Varna in 1992, Discordia began life transporting freight solely by road. It set up a shipping transport department in 1995, followed by one for rail transport in 1998 and another for container and air transport in 1999. It expanded further by opening offices across Bulgaria and abroad, first in Ukraine in 1997, then in Romania in 2008.
Discordia’s road transport services cover the EU and Turkey, while by rail it also ships goods to and from the Commonwealth of Independent States and the Middle East. Its container and air transport department serves ports, airports and warehouses in Europe, Africa, Asia, as well as North and South America.
In recent years, Discordia’s annual growth rate has stood at around 40 %. It has put in place a plan for 2017-22 that entails increases in the size of its fleet from 280 vehicles to more than 1 000, and in gross revenue from EUR 47 million to nearly EUR 150 million.
The company had been finding it hard to get finance due to the time needed to review applications, collateral requirements and administrative burden, with some banks withdrawing offers at the last minute. The Horizon 2020-backed loan solved the problem.
‘The credit helps cover our working capital needs,’ says CEO Hristo Hristov. ‘Big advantages are processing speed and good financial terms. Most of all, it’s innovative, using our receivables – our main assets – as collateral. These grow at the same rate as our need for working capital, and are the most natural collateral source. In Bulgaria, there’s still a preference for using real estate as collateral.’
The loan has also contributed to job creation, with around 160 positions opening up in 2017. In addition, since getting the loan, Discordia has had more interest from other lenders thanks to its stronger financial position and collateral structure.