TradeCap Partners Closes Two PO Finance Facilities

TradeCap Partners recently closed two PO Finance facilities totaling $18mm for two government contractors selling personal protective equipment (PPE). One contractor was a woman owned business with extensive experience in sourcing PPE. The other, a team of disabled veterans with strong logistics and sourcing backgrounds.

Both companies secured sizeable contracts with short delivery timeframes. The capital needed to fulfill the contracts outstripped the capacity of their respective capital bases. The owners and existing investors had contributed equity to bridge a portion of the funding needs but additional capital was required to cover cash flow shortfalls associated with paying for goods and logistics costs. 

TradeCap was able to quickly assess and underwrite the clients’ history of sourcing PPE product and verify the overseas suppliers had proper registrations and product certifications. TradeCap’s funding solution allowed both companies to lock-in quantities with suppliers needed to fulfill the contracts. TradeCap paid for goods, related logistics and third-party pack out costs allowing both clients to expedite deliveries. The partnership with TradeCap led to successful execution under the contracts and securing status as proven vendors resulting in additional follow-on contracts.