For decades, U.S. companies have turned to Asian markets to manufacture goods because of the cost benefits. According to the most recent data collected by the Bureau of Labor Statistics, in 2009 the hourly cost of compensation in China’s manufacturing sector was $1.74 per employee, 96 percent less expensive than the 2009 U.S. hourly cost. Seattle-based Brass Key, Inc., however, employs an Asian manufacturing strategy with a more relationship-centric structure.
This practice is possible because of funding continued relationship with Bibby Financial Services, a worldwide market leader in business cash flow solutions.
Valuing Personal Relationships Over Bottom Line
Brass Key manufactures and provides highly sought-after goods, such as Disney products and home décor items, to large retail chains such as Costco, Walmart and Toys “R” Us. It differs from other companies with Asian manufacturing models, because it is founded on the principle of the Chinese notion of Guanxi, which is business built on personal relationships, throughout all verticals of the supply chain. Brass Key’s involvement in the entire supply chain process—from the initial product design, to manufacturing, to supplier relations—ensures reasonable prices for these quality goods.
When Brass Key needed to level off their cash flow, Bibby Financial Services stepped in with tailored funding solutions that enabled the manufacturer to focus its efforts on the pursuit of new business, allowing the company to grow its operations.
“We found Bibby Financial Services during a time in which banks were unwilling to lend to companies with non-traditional business models,” said Mary Gustaff, CEO of Brass Key. “Bibby Financial Services worked with us to create a flexible financing platform that allows us to take advantage of opportunities as they arise, and we appreciate the team’s accessibility. Decisions are made and communicated quickly to avoid disrupting business flow."
Through accounts receivable funding and purchase order financing, Brass Key flourished and continues to grow its market share and expand its business avenues.
“We have had a long, successful relationship with Brass Key,” said Rachel Debrosse, Account Executive at Bibby Financial Services. “The key to our success starts with the people of Brass Key, who are very communicative on all business matters. We have gotten to know them and can now anticipate their needs. We look forward to continuing this relationship for as long as they need us.”
The full case study is available here.
Bibby Financial Services, a worldwide market leader in business cash flow solutions, bridges the access to cash gap between alternative lenders and traditional banks. It operates offices in ten North American cities and 15 countries. Its product portfolio, which features factoring and asset-lending solutions, serves emerging and established companies. An approved lender for the Export-Import Bank's working capital guaranty program, Bibby USA and Bibby Canada are subsidiaries of its 208-year-old privately held U.K.-based parent.