TradeCap Partners announced the closing of a $9mm Purchase Order Facility for a West Coast based industrial safety gear manufacturer.

Extensive industry experience and product knowledge of the management team led to an exclusive agreement with a global building materials distributor to design and manufacture private label safety gear products.  Initial load-in orders for the items from existing dealer, wholesale and retail channels overlapped, resulting in large upfront capital requirements to produce goods. Given timing of the load-ins and the volume of purchases, goods needed to be put into production immediately to meet delivery dates.

The Company’s bank originally referred a factoring company to help, however the size of the finance need could not be supported by current assets on the balance sheet. The factor introduced TradeCap as their trusted PO Finance partner to provide a solution that leveraged customer purchase orders to secure the capital needed to facilitate production and delivery of the goods.

TradeCap worked quickly with the management team and suppliers to structure letters of credit to support production. TradeCap’s facility financed 100% of the cost of goods required to fulfill the customer purchase orders. TradeCap’s quick response and expeditious closing saved the Company valuable time ensuring production schedules were maintained with suppliers. Letters of credit were issued to suppliers for the initial load-in quantities and a framework was provided for future replenishment purchases as the programs grow and expand.

Clinton Stanton, TradeCap’s Managing Partner, commented, “We’re grateful for our relationships with finance professionals across the country that place their trust in us to help their clients. The scale and impact this growth opportunity will have on our client’s business is game changing.  Partnering with companies and providing capital solutions that allow them to successfully execute their business plans is very rewarding.”