TradeCap Partners, a provider of purchase order funding, closed a $5 million purchase order funding facility for a U.S.-based recreational sporting goods manufacturer.
TradeCap was introduced to the company by its existing senior lender, which recognized the need for an additional working capital solution to support the manufacturer’s growing order volume and upcoming deliveries to nationally recognized U.S. big-box retailers.
The facility will provide funding for 100% of the direct cost of goods, enabling the company to secure payment for critical components from domestic suppliers and efficiently fulfill customer purchase orders. The additional liquidity allows the company to confidently execute large-scale production requirements while maintaining timely delivery commitments to key retail customers.
TradeCap completed its underwriting and approval process within 10 business days, delivering a customized financing solution that enabled the company to meet time-sensitive production schedules and customer delivery deadlines.
“Purchase order financing plays a critical role in helping growing companies capitalize on significant sales opportunities without giving up equity at depressed valuations, while alleviating undue strain on existing supplier and customer relationships,” Bryan Ballowe, managing partner of TradeCap Partners, said. “This is exactly the benefit we provided in this situation. Our client is poised to triple sales over the coming calendar year based on existing backlog of customer orders. Additionally, we are pleased to have partnered with the company’s existing senior lender to provide a solution that supports continued growth and successful execution of these important customer orders.”
