TradeCap Partners closed a $2.2 million production finance facility for a North Carolina producer of mattress covers.
The company, a subsidiary of a large holding company, was established specifically to produce specialty covers used by a large domestic manufacturer of mattresses. Although the principals had a long history in the industry, the company was new and lacked the sales history and balance sheet to obtain a traditional bank line of credit or terms from suppliers.
The company was procuring textiles shipped from domestic and overseas suppliers to a domestic weaver where the fabric was manufactured. From there, goods were transported to a cut and sew facility where the covers were mass produced. The client needed a finance partner with not only the capacity, but the capability to quickly structure and underwrite a finance solution involving multiple suppliers and complex supply chain logistics. The need was immediate since their customer had already scheduled production runs for mattresses and couldn’t afford to have idle lines waiting for the covers.
TradeCap was able to underwrite the company’s complex corporate structure, the multiple suppliers and logistics of the supply chain in 10 business days. TradeCap structured a production finance facility to ensure all vendors in the supply chain would continue to be paid while the client completed production. The facility provided financing of 100% of the material purchases and production costs, a turnkey solution for financing the client’s entire supply chain.
“It was critical we were able to underwrite the request so quickly allowing our client to deliver the covers on time. Our client had been turning away business to focus efforts and resources on fulfilling these initial deliveries. With our funding solution now in place, they can execute to meet the increasing demand of their product in the marketplace and help them grow exponentially,” said Bryan Ballowe, managing partner of TradeCap.