TradeCap Partners closed a $370,000 production finance facility for a fast-growing activewear apparel brand in California. Sales growth had primarily come from an increased online presence and the addition of boutique stores and fitness studios. As the brand gained recognition, a West Coast-based retailer took notice.
The retailer contacted the company about a regional launch in its more than 1,500 locations and purchase orders were issued for a display program. The buyer wanted to incorporate the company’s existing branded apparel SKU’s and add branded accessories that were not being sold by the client. The company’s cash flow and terms from suppliers could not support the capital needs to complete production for the program. Additionally, incorporation of the accessories SKU’s presented another set of challenges given they needed to be sourced from multiple new overseas suppliers.
TradeCap vetted the supply chain, including the screen printer and fulfillment provider, and structured a production finance solution which supported the incremental finance needs. TradeCap purchased the accessories while in-transit from multiple international suppliers and provided a credit enhancement to the domestic apparel vendor to commence production and secure payment prior to shipment to the screen printer. TradeCap also carved out additional availability to pay screen printing and fulfillment costs in excess of terms provided by suppliers, rounding out a turnkey solution for financing the purchase orders.
Clinton Stanton, managing partner of TradeCap, commented, “Being able to play a small role in the growth story of a fast-growing brand is always rewarding. We look forward to being a part of their continued success.”