Tradewind has provided a $1.5 million credit facility to a trading company based in China that exports outdoor furniture and textiles to Europe and the United States. The company, who has a regular annual export volume of $100 million, is using the facility to accommodate the rising demand from international buyers to do business on open account terms. It will also apply the funding to take on new orders and invest in operations.
Before working with Tradewind, the company lacked the liquidity to fill large order volumes and extend payment terms to buyers, who sometimes requested 180 days on open account. As an asset-light trader, the company struggled to secure sufficient financing from banks and instead had to tap into its equity fund to support its operations.
Tradewind was flexible enough to extend coverage to 180 days, terms that other factors approached by the company were unable to support. Its trade finance package not only accelerated cash flow for the trader and replenished its liquidity, but also offered 100% credit protection and collection services.
With Tradewind’s financial assistance, the company is expected to increase its sales by 50% in 2019.
“We are pleased to structure a customized financing solution that equipped our client with the liquidity it needed to achieve growth. Our facility not only improved relations along the supply chain by allowing our client to cater to the payment terms of both their vendors and buyers, but it also provided them with credit protection that will help them succeed in the international trade economy,” states Faraday Chen, Vice President of Sales for Tradewind China.
Tradewind (formerly DS-Concept) provides innovative international cash flow solutions tailored for global clients. Focused on the mid-market, its core products are non-recourse factoring and supply chain finance. The group has built an unrivaled reputation for the depth of its international finance expertise by maintaining a network of offices around the world including the USA, China, India, Hong Kong, UAE, Turkey, Bangladesh, Pakistan, Iceland, Bulgaria, Hungary, Peru and its headquarters in Germany. Combining financing, credit protection, and collections into a single trade finance facility, Tradewind offers streamlined, flexible and best-in-class services.