Tradewind, formerly DS Concept, closed a $10 million export finance facility for a Hong Kong-based fashion accessories design and trading company that serves retailers around the world – including Inditex Group, Abercrombie & Fitch, and Aldo Group – with annual sales turnover of more than $20 million.
The company had pledged all of its assets with banks and was still faced with a liquidity gap as a result of its move to accommodate the longer payment terms of buyers, which are 90 days or more, and from the ensuing pressure to fulfill large orders.
After evaluating other lending sources, the company found Tradewind to be the best fit for its needs. By leveraging Tradewind’s accounts receivable factoring facility, the company expects to generate almost 50% increment on their working capital as well as double digit sales growth in the coming year. The facility also allows the company to increase its production speed and start fulfilling custom orders within one month, when in the past it would take one-and-half to two months.
“Tradewind is pleased to add another reputable fashion client to its portfolio. Our services boost cash flow, eliminate risk, and foil any gap in payment cycles so SMEs like our client can grow and stay competitive in the global marketplace. We pride ourselves on our ability to not only provide a stable source of working capital but an entire supply chain finance solution,” said Goobi Mak, vice president of Sales for Tradewind Hong Kong.
