TradeCap Partners Provides $800,000 PO Finance Facility to Office Supply Company

TradeCap Partners is pleased to announce the closing of an $800,000 purchase order Facility for an office supply company on the West Coast.

The Company had been working with a major retailer on a new endcap program that coincided with the fall, back-to-school season. Despite the COVID pandemic, the retailer’s stores remained open given their classification as an essential business selling a diversified mix of goods. The timing of the pandemic forced the Company to pivot and secure an alternative finance solution to support the program as the original bank financing they had lined up fell through. Fortunately, their banker had a relationship with TradeCap and made an introduction.

TradeCap worked quickly to step in and structure a facility based on the retailer’s purchase orders tied to the endcap program. Letters of credit were issued to two separate suppliers covering 100% of the production costs. Repayment of TradeCap’s PO financing was structured through the referring bank’s supply chain finance program with the retailer.

TradeCap’s solution provided the much needed alternative source of capital to ensure the timeline of the program would stay on track, providing suppliers with the credit enhancement needed to support production. TradeCap’s facility will remain in place following the initial load-in deliveries to support replenishment inventory needs once goods are moved into a modular program following the endcap promotional period.

Clinton Stanton, Managing Partner of TradeCap remarked, “In this difficult time, access to capital is critical for small businesses in order to reduce further disruption of supply chains.  We were happy to assist our bank partner and provide a solution for their client and look forward to being a resource for other businesses facing similar challenges.”