TradeCap Partners, LLC recently announced the closing of a $4,000,000 import trade finance facility for a fast-growing merchandising firm located on the West Coast. The company experienced rapid growth in fiscal year 2017 which had been supported by a factoring facility and stretched payables to key suppliers. The growth put a significant strain on suppliers that were unwilling to extend additional credit.  Sales continued to grow organically and with the addition of two large licensing agreements the company was in need of a solution that would keep payments to suppliers current on future shipments. 

TradeCap quickly identified inventory in-transit and located in domestic third-party warehouses that was pre-sold under customer purchase orders.  TradeCap provided availability on the inventory at 100% of cost allowing the company to immediately curtail payables with key suppliers.  TradeCap also structured future payments to suppliers on a Documents against Payment basis to ensure future presold inventory was paid for in full following shipment.   

TradeCap’s solution bridged the incremental capital needs created by growth and accelerated payments to suppliers enabling them to continue to produce and ship to satisfy growing customer demand. Once inventory was delivered and invoiced, the company utilized its factoring facility to repay TradeCap and provide additional working capital needed to support growth.  With a comprehensive finance solution in place, the company is positioned to execute and deliver on their plan to double sales in 2019.  

Bryan Ballowe, Managing Partner of TradeCap Partners remarked, “Our ability to work quickly, identify and structure a finance solution in an otherwise complicated and challenging situation is one of TradeCap’s core strengths.  Providing capital is one thing, however, taking a consultative approach to provide flexible, properly structured capital is an entirely different value proposition we offer clients.”