TradeCap Partners provided a $4.5 million purchase order funding facility for an importer of heavy equipment parts and filters. TradeCap was introduced to the client by a trusted referral partner with a national presence. The new PO facility is being used to secure payment to overseas suppliers via documentary bank letters of credit to cover overseas costs of goods as well as cash funding to cover freight, duties and other logistics costs to support large sales opportunities with big box retail outlets.
Headquartered in the Southeast, the company had previously been relying on a modest line of credit with a regional bank to fund operations and sales. However, the company recently received significant customer orders from national retailers as a result of winning large sales opportunities over its competition. While the company had long-standing relationships with its overseas suppliers, the sheer size of the customer orders required a significant capital outlay to keep up with demand since the overseas suppliers were not willing to extend favorable payment terms or even begin production without a security of payment in place. The company was seeking a well-capitalized funding partner with experience and flexibility to move fast to provide a well-structured solution prior to the upcoming Chinese New Year.
“As we head into 2026, businesses who source goods from overseas suppliers to meet growing customer demand will need to rely on sound, bespoke, funding structures from well-capitalized funding partners who have experience in international trade and a proven industry track record to execute fast,” Bryan Ballowe, managing partner of TradeCap, said. “Our client can now focus on growing sales and product lines knowing they have a funding partner whose principals have nearly 50 years of combined PO Funding experience and discipline in their corner.”
