TradeRiver USA completed a $32 million revolving trade facility to support the pre-production and receivables financing requirements of a U.S.-based importer and distributor of medical supply products.
The importer had an opportunity to secure several large contracts that required additional funding capacity to fulfill. The importer’s overseas suppliers were requiring a 30% to 50% deposit to begin production and final payment before shipment of the finished products. Traditional bank financing and working capital solutions were not available.
TradeRiver’s revolving trade facility has allowed the importer to fulfill cash prepayment requirements and deliver medical products on time to satisfy ongoing contracted supply requirements. The importer is using TradeRiver’s STEPS platform and revolving trade facility to transact and fund purchase order deposits and final product payment to its overseas suppliers, enabling the suppliers to mobilize and complete production.
The funding process requires no letters of credit, escrow accounts or client cash outlay to fund preproduction and purchase finished product from the importer’s suppliers. TradeRiver also is providing cash funding for fulfillment and logistics costs. TradeRiver’s advance rate is 100% of the cost of the pre-sold inventory. TradeRiver also is providing accounts receivable financing for the importer’s ongoing transactions.
“TradeRiver is pleased to support this successful medical supplies company to capitalize on the significant growth opportunities in front of them. The trade finance program and access to our STEPS transaction platform has allowed our client to secure and fulfill significant additional purchase orders and revenue” Chuck Brazier, executive vice president of TradeRiver USA, said. “We look forward to continuing to deliver flexible trade finance solutions that support client growth opportunities.”
