TradeCap Partners, which provides an online platform for purchase order financing, says it has stepped in to provide letters of credit (L/Cs) for a woman-owned start-up apparel brand that was unable to obtain finance from conventional banking outlets.

The purchase order finance facility for the business includes L/Cs made available to facilitate production of goods, freight charges, warehousing and fulfilment costs.

Business transition

TradeCap extended a US$700,000 purchase order finance facility to the brand that was established as an online business selling directly to customers, thereby bypassing any third-party retailers, wholesalers, or any other middlemen.

The owner subsequently attracted the interest of a larger retailer but could not obtain conventional finance based on the retailer's creditworthiness and the ability to underwrite supply chain performance risk.

L/C facility

TradeCap says it worked with the owner of the start-up and her overseas supplier to structure an L/C facility to support production.

The asset-based lender says it also helped its client save costs on warehousing and freight forwarding by introducing her to new business partners.

Purchase order financing

Dallas-based TradeCap says its purchase order financing is a short-term working capital solution that provides companies immediate access to capital to fulfil orders and contracts.

It serves as the source of incremental capital companies need when facing cash flow challenges created by a lack of working capital, supplier credit or access to more traditional bank financing.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.