TradeCap Partners closed a $15 million purchase order funding facility for an importer of oil country tubular goods that sells to end users and distributors throughout the United States.
The client’s existing bank referred it to TradeCap when the size of its capital needs exceeded the bank’s internal lending limits. TradeCap underwrote the client’s customer orders as well as its overseas supplier and logistics. TradeCap worked with the client’s new accounts receivable lender to help transition the client to a more flexible funding structure that would accommodate growth.
TradeCap’s solution is comprised of letters of credit and payment against shipping documents to secure payment to the overseas supplier.
“This was a complex transaction that required coordination with a new receivables lender to establish customer credit limits and structure the take out [of] the incumbent lender,” Bryan Ballowe, managing partner of TradeCap Partners, said. “While the dynamic nature of the supply chain and historical volatility of industry prices presented a challenge, our comfort level with the industry and international expertise added value for the client to capitalize on the opportunity. We are excited to partner with a strong operator and help navigate a challenging supply chain environment.”
