A $500,000 Production Finance Facility to a Northeast fragrance manufacturer was recently extended by TradeCap Partners.

A steady increase in the volume of deliveries, the hiring of a new sales manager and the addition of two new brand licenses were driving increased working capital needs. Coupled with a lengthening cash conversion cycle due to shipping delays associated with components sourced overseas, the Company was searching for incremental financing.

The supply chain included a mix of domestic and international suppliers. Components were purchased internationally and domestic suppliers were utilized for packaging, fragrance and contract filling. TradeCap assessed the performance capabilities of suppliers and worked quickly to structure a production finance facility to pay for components and raw materials shipping to the contract filler. Following completion of production, the contract filler is paid prior to shipment.

TradeCap’s solution financed work-in-process inventory from multiple domestic and international suppliers, alleviating cash flow constraints throughout the supply chain. With the new finance structure in place, financing capacity is maximized and the stage is set for the Company to execute its growth plan.  

Clinton Stanton, TradeCap’s Managing Partner commented, “The complexity of the client’s supply chain and our ability to structure a production finance solution around it exemplifies the flexibility of our offering. Often times, all a business lacks is a creative financing structure that allows them to take their business to the next level. We believe this to be one of those situations and are excited to be a part of it.”