TradeCap Partners closed a $1,500,000 Production Finance Facility for a Northeastern based consumer packaged goods company whose products can be found online and in-stores across the country.

The recent turmoil that rippled through US financial institutions resulted in the company’s primary lender having to shed its portfolio of assets. Tightening credit markets created an untimely obstacle for the company seeking a new lender that could support growth. The company selected a non-bank ABL to replace their existing lender but several upcoming large seasonal wholesale programs required more capital than availability under the new ABL facility.

In an effort to enhance their offering, the ABL introduced TradeCap and its Production Financing capabilities as the solution to satisfy the company’s seasonal purchase order finance needs. TradeCap’s financing will be used to make payments to various ingredient and packaging suppliers as well as co-packers for tolling costs. Upon shipment of goods under the programs, increased availability under the ABL facility from the resulting receivables will be used to repay TradeCap’s purchase order financing.

Clinton Stanton, Managing Partner of TradeCap Partners commented, “The flexibility of TradeCap’s purchase order funding solution serves as a resource the company can tap into during seasonal peak working capital needs when supplier terms are stretched and cash flow is tight. The combined capacity from the ABL and TradeCap provide a runway for continued growth.”