Starting January 28, 2017 factories in China will shut down for four weeks in observance of the Chinese New Year. Goods for the upcoming spring/summer sales seasons need to be made and shipped prior to this shutdown. However, laying out cash upfront for goods that won’t be on the shelves for months can cause a tremendous financial burden for small to mid-sized businesses. 

Capital Business Credit (CBC), a supply chain finance company, is expanding its Supplier Early Payment (SEP) Program to aid small to mid-sized retailers. The U.S retailer will be granted extended payment terms, while ensuring their suppliers get paid up front and that all goods are shipped on time. The program facilitates payment to the foreign supplier upon shipment, and then provides the U.S retailer or wholesaler with up to 120 days to pay CBC back. The program was previously only available to U.S. based importers and wholesalers working with overseas suppliers.

“After nearly three decades of serving importers and wholesalers, we have extended our SEP Program to support small- and mid-sized retailers that are increasingly purchasing goods directly from China,” said Andrew Tananbaum, executive chairman of CBC. “With Chinese-based manufacturers asking for payments upfront, it is unrealistic for small- to mid-sized businesses to lay out significant sums of money to purchase goods that won’t be available for resale for as long as six months.” 
Tananbaum added, “With the flexibility of a revolving line of credit, CBC’s uncollateralized program now provides financial support to keep products flowing from China to small- and mid-sized businesses in preparation for the Chinese New Year.” 

With more than 30 years of experience in financing the consumer supply chain, CBC’s Chinese New Year program provides year-round access to lines of credit up to $20 million through their trade finance, asset-based lending and factoring facilities. These programs are available to overseas suppliers around the world, U.S.-based importers / wholesalers and now small and mid-sized retailers.

Capital Business Credit’s (CBC) Trade Finance division has offices in the U.S. and Asia that works   with manufacturers and suppliers outside of the U.S. to relieve the financial pressure that exists on both sides of an overseas transaction., Through CBC’s Trade Finance (SEP) Program a U.S.-based importer can receive payment terms up to net 120 days, while the foreign manufacturers/suppliers receive 100 percent payment for goods at the time of shipment.