Tradewind has closed a $2.5 million trade finance facility for a company based in China and the U.S. that sells sustainable, ecologically sourced, and manufactured homewares.
The company exports to major retailers in the U.S. including Amazon, Target, Kroger, and The Container Store, as well as to distributors in key international markets globally. The client leveraged the many benefits provided by international trade finance companies and used the accelerated cash flow for working capital. This trade finance service solution allowed the client to increase production volumes, expand into new distribution channels, and initiate diversified brand marketing.
Export and import-based companies that sell to tier 1 retailers, who require long payment terms, can experience gaps in cash flow. This was the case for the client, who sought a sustainable financing solution that could bridge these gaps—keeping their vendors paid on time and allowing them to invest in marketing, R&D, and other necessities of fast-growth companies. Traditional bank financing proved to be too cumbersome, rigid and slow and therefore an unsuitable option for them.
Tradewind offered a flexible funding solution that was a better fit for its needs. The firm also provided credit insurance, leveraging its expertise in international trade financing, and mirrored the client’s international footprint with an office in New York and Shanghai.
“Consumer demand for home products that reduce waste and harmful impact to the environment is on an ever-increasing growth trajectory. As a certified B corporation and pioneer in ecologically sourced and manufactured products, our client has demonstrated tremendous expansion and is now poised to outpace forecasts with their Tradewind facility in place,” said William Avedon, VP of sales for Tradewind’s New York office.
