TradeCap Partners secured a $1.6 million purchase order finance facility for a brand supplier of houseware goods based in North Carolina. The facility will support the company’s expansion into the retail channel, complementing its direct-to-consumer business.
Following successive years of growth in the direct-to-consumer channel, the company was ready to increase brand exposure and enter the retail space. After securing its first order from a national retailer, the company found itself in need of incremental financing to manufacture the inventory.
A deposit was made to its foreign supplier to commence production, but the company needed financing to pay the remaining cost of goods, freight and import tariffs. TradeCap Partners structured a facility to accommodate the specific capital needs associated with the retail order. A combination of letters of credit and cash payments were used to supplement existing cash flow, allowing the order to be fulfilled. With the added brand exposure, the company is now in active discussions with several additional retailers looking to add the brand to their product mix.
“We have great appreciation for early-stage brand companies and their relentless effort to scale,” Clinton Stanton, managing partner of TradeCap Partners, said. “PO financing aligns with an entrepreneur’s goal of preserving equity. It serves as a source of non-dilutive bridge capital, allowing companies to extend the runway and increase valuation prior to their next raise.”
