TradeCap Partners closed a $2.5 million purchase order finance facility for a video game accessory company located in the Pacific Northwest.
The ventured-backed client sought non-dilutive capital to produce its newest patented gaming accessory. After receiving purchase orders from multiple customers, the company needed to ramp production. Rather than utilize cash from its most recent equity raise, it wanted to secure a finance solution to support working capital.
The company had worked with a factoring company on a prior venture, so it reconnected to put a finance solution in place to support the production of inventory and the collection cycle following delivery of goods to customers. The factor brought in TradeCap Partners to structure the front-end financing of the inventory build and established a receivables facility to provide additional liquidity once goods were produced, shipped and invoiced.
TradeCap Partners’ financing support allowed the gaming accessories to be manufactured with overseas suppliers and shipped through a combination of air and sea shipments. The non-dilutive structure extended the runway of cash from the equity raise and enhanced the value of original shareholders.
