TradeCap Partners closed a $2.5 million purchase order finance facility for a West Coast-based consumer packaged goods company. The venture capital backed-company partnered with a wholesaler to contribute to Feeding America.
The company secured orders for a pallet program distributed to all doors of the wholesaler. Given the size of the program and delivery dates inside a 30-day window, purchases of raw ingredients and co-packing needed to commence immediately. Open credit extended by the co-packer was fully utilized as a result of the company’s e-commerce business. The company needed a solution to satisfy terms of the co-packer, allowing it to execute and complete larger volume production runs to fulfill orders.
TradeCap worked with the company and co-packer to structure a production finance solution allowing ingredients to be sourced immediately. The facility provided availability for 100% of the costs, including ingredients, packaging and co-packing related to production of the goods.
TradeCap’s production finance solution allowed the co-packer and company to scale production, meet the compressed delivery date schedule and fulfill the orders and their contribution to Feeding America.
“With the continued health and wellness trends of consumers and their desire for better for you brands, our team is seeing more and more opportunities in the CPG space,” Clinton Stanton, managing partner at TradeCap Partners, said. “We have a depth of expertise in working with brand companies and structuring non-dilutive capital solutions allowing them to scale production and grow their businesses. There was an added bonus in working with this client given we were able to provide a growth capital solution and contribute to the greater cause of fighting hunger.”
