Tradewind has provided a $1.4 million credit facility to a home fashion products company based in Shanghai that designs and sells kitchen utensils and home accessories to buyers located domestically and in the U.S. and Europe.
Its customer base includes Walmart, Costco and other large chain stores, hotel groups, and online retailers, such as Amazon and Wayfair.
When it approached Tradewind, the company was in need of accelerated cash flow to support its growth. Despite its current equity financing from an angel investor and inventory financing from banks, the company’s operating capital remained too tight for comfort. Increasing the financial pressure, its supplier sought on-time payment from them, while, in contrast, its buyers requested 75 to 90 days on open account to pay their bills, delaying incoming cash.
Through its export factoring services that advance cash to clients, Tradewind was able to ease the shortage in liquidity caused by the company’s additional capital needs from ramped up growth, coupled with the challenge of paying suppliers before receiving payment from their customers, which takes months.
“We are happy to be part of the company’s growth story by providing them with funding that will scale up with them. Tradewind was pleased to service our client with both efficiency and flexibility, part of its ethos as a German entrepreneurial company, to resolve their unique financial needs with quick results,” states Fiona Li, project manager of Sales for Tradewind Shanghai.
