TradeCap Partners closed a $2.5MM purchase order finance facility for a video game accessory company located in the Pacific Northwest.

An experienced management team with venture capital backing was seeking non-dilutive capital to produce its newest patented gaming accessory. After receiving purchase orders from multiple customers, the company needed to ramp production. Rather than utilize cash from their most recent raise, they wanted to secure a finance solution to support working capital.

The management team had worked with a factoring company on a prior venture. They reconnected to put a finance solution in place to support the production of inventory and collection cycle following delivery of goods to customers. The factor brought in TradeCap to structure the front end financing of the inventory build and established a receivables facility to provide additional liquidity once goods were produced, shipped and invoiced.
 
TradeCap’s financing support allowed gaming accessories to be manufactured with overseas suppliers and shipped through a combination of air and sea shipments. The non-dilutive structure extended the runway of cash from the equity raise and enhanced the value of original shareholders.