TradeCap Partners facilitated the closing of a $1.2 million purchase order finance facility for an importer of household products based in Oregon. TradeCap was introduced by the company’s financial advisor.
Supply chain disruptions caused by the COVID-19 pandemic have left many retail stores with shortages of daily consumable household goods. One retailer was in need of the BFJimmediate supply of goods to fill shortfalls of product existing vendors were not delivering on time. The retailer contacted the importer to solidify an alternate supply of product and issued the importer purchase orders.
The importer, having worked with the retailer and in the consumer packaged goods space for more than two decades, used sourcing connections to secure supply from a mill in the Middle East. With retail purchase orders in hand and quantities locked in to fill the orders, the importer needed a finance partner to facilitate fulfillment.
TradeCap structured an in-transit inventory facility, making payments to the supplier as goods were shipped. TradeCap also provided funding to pay all import costs, including freight, duties and outbound logistics. In a matter of days, TradeCap closed the facility and made initial supplier payments to accommodate the retailer’s delivery timeline.
“TradeCap’s ability to expedite closing of transactional capital solutions is a great advantage for companies with incremental needs,” Clinton Stanton, managing partner at TradeCap, said. “We’re committed to providing creative and flexible solutions helping businesses execute growth opportunities.”