Tradewind provided an $8 million non-recourse factoring facility to a power solutions company that supplies, installs, and maintains its line of products for the telecom industry throughout the U.S.
The power solutions company recently entered into a new contract with one of its telecom partners that expanded the territory it serviced for them from a regional to a national level. With the increase in territory, the demand for its power products and services tripled, which forced it to hire more staff, place more orders from its vendors and find additional working capital to support this growth.
The company’s vendor payment terms are net 60 days while the payment terms of the telecom partner are net 90 days from job completion.
Tradewind’s factoring facility significantly increased liquidity for the power solutions provider and allowed it to pay its vendors on time and maintain sufficient inventory while waiting on payment from its buyers. The funding will continue to support the exponential growth of the company by expediting its cash flow to keep up with demand and vendor payment.
Tradewind also provides financing for one of the power company’s suppliers, which made the financial institution a strong fit for its own cash flow needs as it helped streamline the supply chain.
Additionally, Tradewind offered competitive pricing and could accommodate for single debtor concentration.
“We’re excited to be a part of our client’s growth story. With their nationwide expansion and our financial support, the company expects to triple its revenue this year. They have years of proven success as a service provider and supply premium products to some of the largest companies in the telecom industry. It’s been a pleasure to work with them,” said Brian Dowd, vice president of Sales of Tradewind’s New York office.
