TradeCap Partners closed a $1.75 million purchase order finance facility for a consumer packaged goods company to support its expansion with Costco.
After a successful regional launch, Costco issued orders for additional orders in new regions. The company was in the midst of due diligence with an asset-based lender, but order delivery dates required an immediate bridge to get goods produced and shipped before the asset-based lender could close.
The asset-based lender introduced TradeCap to solve the interim working capital needs. TradeCap structured and closed a PO finance solution, making payments to the co-packer and packaging and fulfillment suppliers in order to ramp production and meet delivery dates for the expansion. Additionally, TradeCap’s solution provided the bridge needed to allow the company to close its ABL facility without having to forgo or delay the incremental sales. With both the asset-based lender’s and TradeCap’s respective facilities in place, the company has a permanent working capital facility and a PO facility to accommodate future expansion and growth.
“We were happy to serve as a trusted partner to the ABL and ensure their client’s funding needs were met in the interim,” Clinton Stanton, managing partner at TradeCap, said. “This transaction was a great example of how our bridge PO finance solutions can be used as a resource by ABLs and other lenders to win business and extend their timeline to close for new clients.”
