TradeCap Partners closed a $5.5 million purchase order facility for an East Coast-based audio/visual-IT integration company to support a large public sector contract award to upgrade existing technology.
The company had a long-standing relationship with the customer having completed several projects in the past. Based on performance history, the company was asked to bid on a new project to upgrade existing technology hardware in multiple locations. Following a six month vetting process, the company was selected over the incumbent supplier and received the award.
The company had projected the additional working capital requirements associated with the project and identified the funding gap that exceeded current cash flow. The company had an existing bank facility, but it was not large enough to accommodate the incremental financing need.
TradeCap was introduced to the company by a referral source. TradeCap worked with the company to review payment terms with suppliers and project cash flows to structure a solution
TradeCap was able to underwrite and close within two weeks, providing timely payments to the primary overseas supplier according to the original schedule. TradeCap administered payment for the initial container shipments using a ‘Documents Against Payment’ arrangement, and issued a documentary bank letter of credit to support the second wave of production. Funds were made available to cover freight, duties and other direct project costs.
“We enjoy collaborating with business owners to structure the best finance solution that meets their needs, instilling confidence knowing they have a strong financial partner to help them grow,” Bryan Ballowe, co-founder and managing partner of TradeCap Partners, said. “We are very excited about this new relationship and our role in helping a business fulfill such a meaningful sale.”
