TradeCap Partners recently closed a $10 million PO funding solution for a Midwest based distributor of rolled steel. The trade finance solution allowed the Company to capitalize on significant customer demand brought on by lack of supply and limited allocation from US steel mills.

The client had been in business for over 10 years and historically taken advantage of favorable payment terms through a domestic partnership with another steel distributor.  Based on the tremendous demand resulting from current supply chain issues, the client was unable to finance large, incremental orders received from long standing customers through terms with their distribution partner.

The Company originally turned to their factor for help.  Given the size of the orders and the need for letters of credit to guarantee payment to overseas suppliers and commence production, the factor was unable to help.  They quickly recommended TradeCap, knowing their capacity and capability to consult with the client and structure a solution.

TradeCap was able to underwrite the orders and logistics within a couple of weeks and issue letters of credit to the overseas suppliers covering 100% of the CIF cost of goods.  TradeCap’s facility also incorporated duties and other port charges to facilitate delivery of goods to various customers.  

“Our client’s experience in the industry and history with its suppliers and customers was critical in providing the comfort needed to support the funding need.  TradeCap’s ability to finance large orders and programs in a very short period of time evidences the capcaity and flexibility of our PO funding solutions,” commented Bryan Ballowe, Managing Partner of TradeCap.