TradeCap Partners closed a $15 million Purchase Order Funding facility for an importer of oil country tubular goods selling to large end users and distributors throughout the United States.

The client was referred to TradeCap by its existing bank when the size of their capital needs exceeded the banks internal lending limits. TradeCap was able to quickly underwrite the client’s customer orders as well as the overseas supplier and logistics. TradeCap worked closely with the client’s new accounts receivable lender to help transition the client to a more flexible funding structure that would accommodate growth.

TradeCap’s solution comprised of letters of credit and payment against shipping documents to secure payment to the overseas supplier.  The new PO funding facility supported significant growth the client had been experiencing as demand for piping and casing had grown amidst an environment of tight supply and long sourcing lead times.

Bryan Ballowe, Managing Partner of TradeCap Partners commented, “This was a complex transaction that required coordination with a new receivables lender to establish customer credit limits and structure the take out the incumbent lender. While the dynamic nature of the supply chain and historical volatility of industry prices presented a challenge, our comfort level with the industry and international expertise added value for the client to capitalize on the opportunity.  We are excited to partner with a strong operator and help navigate a challenging supply chain environment.”