TradeCap Partners closed a $125,000 production finance facility for a California-based women’s clothing designer. The owner, a designer at heart, found herself dealing with day-to-day business challenges of managing increased demand for her apparel. The company had received large seasonal orders from a high-end retailer and needed additional capital to produce its spring line. It was unable to fund production due to working capital constraints and lack of supplier credit.
The company’s supplier, also California-based, sourced goods from overseas and despite its long-standing relationship required a deposit to start production given the size of the order. The company initially turned toits factor for help. Although the factor had provided over-advances in the past, the immediate need was larger than the factor was comfortable accommodating. The company needed a finance partner that could provide incremental growth capital and one willing to think outside the box. The company’s factor suggested it contact TradeCap.
TradeCap was able to underwrite the company and structure a facility to support the supplier’s overseas production within five business days. The facility provided financing for the initial deposit as well as the balance of cost of goods upon shipment. Production is on schedule, allowing deliveries to be made on time. As goods are delivered and invoiced, the factor will advance on the resulting receivables, repaying TradeCap’s upfront financing.
Bryan Ballowe, managing partner of TradeCap, commented, “We worked hard to understand our client’s supply chain and vision for growth. With our funding solution in place, the owner can focus more on designing and growing customer relationships knowing she has the financial support necessary to execute. We are very excited about this new relationship.”