TradeCap Partners closed a $450,000 purchase order finance facility for a Texas-based startup manufacturer and distributor of outdoor goods.
The founders of the company have more than 40 years of experience in the outdoor industry selling a variety of branded and private label products, but they desired to develop and build brands of their own. Through the planning process, they approached their local banker to establish a credit facility for working capital. Given the limited operating history and financials, the bank was unable to help but introduced TradeCap as an alternative source of capital that assists startups.
As initial orders began flowing in from multiple customers, the company worked with TradeCap to finance production of its branded goods. With the company’s supply chain comprised of several overseas suppliers that required consolidation at its leased warehouse, the company needed an accommodative solution. TradeCap established a facility that satisfied various supplier payment terms, which included cash against documents and letters of credit. Availability was also incorporated to pay import freight and duties costs.
TradeCap’s non-dilutive solution preserved 100% of the founders’ ownership and provided the flexible structure needed to complete transition of the business plan and rapidly scale.
“Working with founders taking the entrepreneurial leap is always invigorating,” Clinton Stanton, managing partner at TradeCap Partners, said. “Having been in their shoes, we find great joy in serving as a financial partner, aiding founders with capital that brings vision to reality and accelerates growth.”
