TradeCap Partners extended a $700,000 purchase order finance facility to a minority- and women-owned startup apparel brand.
Having started her brand with a D2C online presence only, the founder landed her first big opportunity with a large retailer. The retailer was determined to secure exclusivity with the brand as part of a campaign to expand its supplier base and diversify offerings. Lacking access to traditional capital, the company was in search of a partner that could accommodate its financing needs based on the credit of its end-customer and ability to underwrite performance risk of its supply chain.
TradeCap was introduced by a referral source that assists small businesses selling into retail and wholesale channels. TradeCap worked with the client and its primary overseas supplier to structure a letter of credit facility that would support production. Additional relationship capital was contributed by TradeCap through its introduction to a new freight forwarder and warehouse partner resulting in cost savings and increased capacity.
The purchase order finance facility included availability for letter of credit issuances to facilitate production of goods in addition to payment for freight, duties, warehousing and fulfillment costs. TradeCap’s financing helped the company secure orders for the next season as well as an initial test order with a new customer. The turnkey funding solution created the capacity to fulfill customer orders it otherwise wouldn’t have been able to.
“Partnering with founders and early-stage companies are some of the most rewarding opportunities we have as a finance company.” Clinton Stanton, managing partner at TradeCap, said. ‘It allows us to serve as a consultant, pass along our knowledge of financing supply chains, and add further value through our contacts and relationships when needed. We’re excited about the prospects that lie ahead for the brand and our partnership with them.”
