TradeCap announced the recent closing of a $500,000 Trade Finance Facility with a fast growing, Colorado based toy company.

The Company experienced exponential growth in FY 2016 and sales through 2Q2017 had already surpassed that of the prior year.  In the midst of booking orders for its upcoming holiday season, the Company received a sizeable order from a new customer.  The increased order was incremental to the normal seasonal needs and created an inventory finance need over and above what the Company’s existing working capital base could support. 

Initially, the Company was evaluating an alternative source of financing from private investors. That option required the Company to drawdown a large slug of capital for a minimum period exceeding a year.  Identifying the private money option did not match the shorter term needs of the Company, TradeCap proposed a transactional Trade Finance Facility, which enabled the Company to finance 100% of the inventory, freight and warehousing costs needed to fulfill the incremental order received.

TradeCap’s consultative approach provided a flexible alternative finance solution for the current orders as well as future growth. Additionally, TradeCap’s offering reduced the Company’s capital costs compared to the less flexible, longer term-debt option they were purs