TradeCap Partners recently established a $600,000 Purchase Order Finance Facility for a Texas based seasonal Christmas goods importer.  

Continuous year over year growth combined with increased production and shipping lead times over the past 24 months had lengthened the company’s cash conversion cycle. In an effort to make sure products arrived well ahead of schedule for the holiday season, the company made the decision to bring forward production and shipping dates. While prudent, it required additional financing. Having spoken with TradeCap the prior season following an introduction from their banker, the company reconnected and outlined their seasonal needs.

Familiar with the business and its management, TradeCap expedited closing and funding. Payments were made to suppliers for the initial container shipments. Further availability was carved out for subsequent shipments to be made over a two-month period, including freight and duties.

TradeCap’s solution provided the cash flow bridge the company needed, ensuring shipment dates from their overseas supplier remained on schedule. Despite supply chain disruptions, TradeCap’s support of the company’s decision put them in a position of strength leading up to their primary selling season.   

Supply chain and logistics challenges are a persistent problem affecting all business, remarked Clinton Stanton, TradeCap’s Managing Partner. We keep a pulse on these challenges and help create flexible solutions so companies can navigate them. This is especially important to seasonal businesses that rely heavily on having inventory during peak selling seasons that make or break their year.