TradeCap Partners closed two PO finance facilities totaling $18 million for government contractors selling personal protective equipment. One contractor is a women-owned business with experience in sourcing PPE while the other is a team of veterans with disabilities with a strong logistics and sourcing background.
Both companies secured sizable contracts with short delivery time frames. The capital needed to fulfill the contracts outstripped the capacity of their respective capital bases. The owners and existing investors had contributed equity to bridge a portion of the funding needs, but additional capital was required to cover cash flow shortfalls associated with paying for goods and logistics costs.
TradeCap assessed and underwrote the clients’ history of sourcing PPE products and verified the overseas suppliers had proper registrations and product certifications. TradeCap’s funding solution allowed both companies to lock in quantities with suppliers needed to fulfill contracts. TradeCap paid for goods, related logistics and third-party pack out costs, allowing both clients to expedite deliveries. The partnership with TradeCap led to execution under the contracts and secured status as proven vendors, resulting in additional follow-on contracts.