TradeCap Partners closed a $2.4 million purchase order finance facility for a Canadian footwear importer located in Quebec.
The company recently secured a new license with exclusive distribution rights to the Canadian market. Shortly thereafter, it landed a seasonal program with a major wholesaler for distribution throughout Canada. Although the company had an existing line of credit in place with a large Canadian bank, the size of the program required additional capital to support production with the licensor’s overseas supplier.
TradeCap collaborated with the company and supplier and implemented a payment-against-documents structure to ensure goods were paid for as shipped over the month-and-a-half shipping window. TradeCap’s facility provided funding of 100% of the cost of inventory and allowed the supplier to stay within the credit limit and terms extended to the company despite larger than normal inventory flows.
With the solution in place, the company and licensor have a framework and financing solution in place to support increased inventory demands as they expand distribution to other retailers and wholesalers in Canada.
“This relationship exemplifies TradeCap’s cross-border capabilities to work with companies in Canada as well as the U.S.,” Clinton Stanton, managing partner at TradeCap Partners, said. “We look forward to expanding this relationship and doing our small part to help the company grow.”
