TradeCap Partners closed a $350,000 purchase order finance facility for an importer of paper products based in Minnesota. TradeCap was introduced to the company through a factoring partner that had worked with the company for close to a decade.
The company’s customer base includes several distributors and essential retailers. Sales had been steadily increasing because of higher than normal consumer demand for household paper products during the nationwide shutdown related to the COVID-19 pandemic. The company seized the opportunity to grow market share and supply a new account with a grocer with locations across the country. Purchase orders were issued for deliveries to multiple distribution centers on the East and West Coasts but the client needed additional cash flow to secure the inventory.
TradeCap expedited due diligence with the help of the factor and closed. The facility was structured to pay for 100% of the cost of the inventory, freight and tariffs.
The supplier was paid for product while inventory was in-transit, and freight and tariff payments were made to the forwarder and deliveries were made on time to the new customer. The client is now working to secure additional capacity with the supplier to support recurring inventory flows and meet demand.
