TradeCap Partners recently closed a $500,000 purchase order funding facility for a Massachusetts distributor of cenospheres used in a variety of applications ranging from the oil and gas to consumer products industries. 

While the company was experiencing significant sales growth, their current finance provider decided to exit the relationship.  They were in immediate need of a solution that would refinance existing debt and support increased inventory capital requirements resulting from sales growth. The company also needed to ensure there were no delays in maintaining a consistent flow of product to customers based on their orders. 

The client engaged a factoring company that was able to provide a higher advance rate against accounts receivable but still needed a solution to finance presold inventory in-transit. Inventory was being purchased from suppliers in Eastern Europe and Russia and being sold to large multinational companies in both the United States and Middle East.  It was critical the factor bring in a trusted partner that was comfortable with the offshore logistics involved with shipping a unique product all over the world and securing payments to suppliers in Eastern Europe and Russia.  The factor turned to TradeCap to structure a solution to support the client’s inventory finance needs. 

TradeCap was able to underwrite the transaction and implement a funding solution with the company’s overseas suppliers to pay for inventory in-transit. The added availability from TradeCap’s purchase order finance facility combined with availability from the factoring facility resulted in a successful refinance and provided the complete finance solution the company was seeking.  Bryan Ballowe, Managing Partner of TradeCap remarked, “This was an especially complicated process due to the nature of the product, logistics involved, and coordination with the factor to provide sufficient availability to refinance obligations with the existing lender.  This is a great example of TradeCap’s capability to move quickly and provide a creative funding solution for the client’s supply chain.”