TradeCap Partners closed a $1.5 million purchase order finance facility for a West Coast-based beauty products company. The facility will support fulfillment of large retail orders for multiple SKUs.
Following expiration of an exclusivity agreement with its first customer, the company was ready to grow, so it secured a backlog of orders for spring modular sets, more than doubling its financing need related to its inventory build.
An existing client of TradeCap Partners made the introduction between the lender and the beauty products company. Within a week, TradeCap structured a solution to finance in-transit inventory and production with the company’s overseas supplier. TradeCap’s facility incorporated both letters of credit and documents against payment funding options, providing flexibility around payment terms with suppliers. The facility advanced up to 100% of the transactional costs, including freight, duties, tariffs and fulfillment.
“Our speed in structuring a flexible solution allowed the company to capitalize on fulfillment of the order backlog. It aligned perfectly with the company’s interim growth capital needs as they continue to scale and expand their retail channel footprint,” Clinton Stanton, managing partner of TradeCap Partners, said.
