Daily News: May 9, 2019

TradeCap Closes $200K Import Facility for Boutique Business

A Texas-based small business selling housewares and furniture to boutiques across the Southeast U.S. secured a $200,000 import finance facility from TradeCap Partners.

The company’s bank introduced it to TradeCap after the bank had extended a line of credit supported by receivables. The company received a large purchase order from a regional wholesaler with multiple stores across the Southeast which covered summer seasonal wares and furniture. The company needed to put goods into production immediately with two overseas suppliers, so its banker contacted TradeCap to help.

TradeCap assessed the needs of the business and suggested the company issue letters of credit to the overseas suppliers to support production of goods. Healthy margins of the purchase orders allowed TradeCap to structure financing of the costs of goods, freight and duties. TradeCap also provided availability to maximize capacity of container load shipments allowing the company to import additional inventory for stock.

TradeCap’s facility was closed within 5 days and letters of credit were issued to suppliers in order to assure the company could meet delivery windows of their new wholesale customer. Goods were delivered ahead of schedule and are currently selling through. The additional stock inventory financed by TradeCap will ensure replenishment orders from the wholesaler can be shipped timely, further solidifying the company’s ability to perform as a new vendor.