TSL Express Daily News

TradeCap Partners closed a $7MM purchase order finance facility for a beauty and wellness company based in Florida. The Company designs, manufactures and distributes skincare devices, accessories and topical products.

The Company had experienced 100%+ year over year growth in 2020 with existing and new customer commitments for 2021 projected to double sales again. They had been utilizing a factoring facility in conjunction with a bank line of credit, however, capacity of that facility was limited to a carve-out of two large debtors.  Anticipated growth required additional financing capacity to fulfill new retailer programs and increased order commitments.

TradeCap worked in tandem with a new factor and delivered a combined receivables and purchase order finance solution. A four party intercreditor agreement was established providing carve-out of several additional debtors and collateral. TradeCap’s facility included availability for issuances of letters of credit and payment against documents, satisfying the needs of multiple suppliers requiring pre-shipment financing or payment on terms. The facility also provided capacity for payment of freight, duties and tariffs.

With the new finance structure in place, the Company has increased availability and flexibility of its financing to accommodate future growth. The added capacity will also be instrumental in keeping goods flowing from suppliers in a timely manner, minimizing the impact of supply chain disruptions and stretched cash flow leading up to the all-important holiday season.  

TradeCap Partners Managing Partner, Clinton Stanton, commented, “We’re grateful for the opportunity to be working with this rapidly growing company. The collaborative effort allowed for a seamless transition to a more beneficial finance structure, positioning the Company well to execute growth plans and increase profitability.”