Earlier this year, TradeCap Partners closed a $7 million purchase order finance facility for a supplier providing new and used equipment to big box retailers located throughout the U.S. and Canada. The facility was comprised of cash payments against shipping documents as well as a documentary bank letter of credit, which secured payment to the company’s overseas suppliers for the direct cost of goods.

“[This deal] highlights the benefit TradeCap’s purchase order funding solution brings to clients seeking incremental capital to execute on large sales opportunities, as well as to its partners in the asset-based lending and factoring industry,” Bryan Ballowe, managing partner at TradeCap Partners, said in a press release about the deal. “Our referral sources treat Tradecap as an extension of their very own product offering and put a lot of trust in us to execute timely and professionally. We take pride in knowing we are a trusted and integral partner our referral sources can look to consistently and confidently time and time again.”

So how did this deal come to TradeCap? Ballowe says an existing lender brought TradeCap in to help finance a working capital need it wasn’t able to accommodate in order to keep the company happy.

“Based on our experience, we had a long-standing relationship with this asset-based lender and they were very happy that they could bring us in as a solution to help keep this customer from moving to a different lender,” Ballowe says.

Ballowe’s team snatched the deal up instantly due to several reasons. First, it gave TradeCap the opportunity to establish a relationship with the growing company, one that is bound to need more financing to continue to move forward, according to Ballowe. Secondly, the deal meant the client didn’t have to terminate its longstanding relationship with its existing lender. Lastly, the client gained a funding solution to lean on in tandem with its original lender support, allowing it to take advantage of sales growth opportunities.

Ballowe found this deal unique because of how quickly his team was able to execute and close it, demonstrating how a strong relationship between two lenders can provide a solution to a common client while strengthening and synergizing the relationship between the two lenders.

“The ABL that had the existing relationship with the borrower was not aware that they were looking to move their lending relationship to another lender since they could not accommodate their funding need directly. By the time the lender found out the borrower was speaking to other lenders, they immediately brought us in once the team realized what the borrower’s funding needs were,” Ballowe says. “We issued a term sheet within 24 hours of an initial call and were able to close within a matter of 10 days with the help and cooperation of both the borrower and the existing lender. Our existing relationship with the lender also helped expedite the process from an intercreditor and reporting standpoint.”