TradeCap Partners recently provided a $1 million purchase order finance import facility to a West Coast-based private label apparel manufacturer and distributor. TradeCap was introduced to the client by a factor in the Southeast.
The facility supports the overseas manufacturing of various private label apparel products sold through both big-box and boutique retail channels. TradeCap’s facility provides advances covering 100% of the cost of goods, freight and duties, utilizing letters of credit and payments against shipping documents.
The company had established terms with its primary overseas manufacturers; however, continued growth in orders from two key customers exceeded the amount of credit suppliers were willing to extend. As a result, the company needed additional financial capacity to maintain production schedules, pay for goods as shipped and remain within the suppliers’ credit limits.
TradeCap’s import facility provided the flexible capital needed to support the company’s growing order volume, preserve key supplier relationships and fulfill increasing demand from its customers.
