TradeCap Partners closed a $600,000 production finance facility for an engineering design and manufacturing company in Michigan.
The company designs and engineers automated equipment sold to Tier 1 automotive suppliers and original equipment manufacturers.
The company was working with two tier 1 suppliers on the design engineering related to four automated machines to be incorporated into existing assembly lines. The total value of the orders represented an additional $1.15 million in sales. The timing of both projects required all four machines to be manufactured and delivered by year end, creating a cash flow problem for the manufacturer.
The company initially contacted its factor for help. Given the size of the orders and four-month production lead time, the factor contacted TradeCap.
TradeCap worked closely with the company to understand the incremental capital needs associated with manufacturing the machines. A facility was structured to support 100% of the bill of materials and direct labor costs, providing the support needed to manufacture and deliver the machines on time.
TradeCap’s facility will benefit the company by addressing the cash flow needs related to the current orders and will remain in place to help support additional projects in the company’s backlog.