Daily News: December 6, 2017

TradeCap Closes $250K Facility for Piping Distributor


TradeCap Partners closed a $250,000 supply chain finance facility for a Maryland-based pipe distribution company.

An asset-based lender contacted TradeCap Partners while in search of a finance solution for its client. The client had received a large order for the delivery of specialized pipe, part of a larger contract with a long-standing customer. There was no availability under the credit facility with the lender, and TradeCap’s client had exhausted credit terms from the key supplier it needed to purchase goods. The client required a quick turn solution as the job site was ready to take delivery of the pipe to stay on schedule.

TradeCap worked in conjunction with the asset-based lender to underwrite, close and fund the transaction within a week. During that time, TradeCap also negotiated an intercreditor agreement with the lender and the supplier, getting the goods shipped despite credit terms being maxed out.

Based on TradeCap’s payment to the supplier, all shipments to the site will be made on time. With the supply chain facility now in place, the client will also be able to focus on business growth despite a lack of free cash flow or supplier credit.

Bryan Ballowe, managing partner of TradeCap, commented, “This is yet another example of TradeCap’s ability to move quickly and execute in a mission critical manner to help ensure our clients fulfill deliveries to their valued customers on time.”