TradeCap Delivers $800K PO Finance Facility to Office Supply Company

TradeCap Partners closed an $800,000 purchase order facility for an office supply company on the West Coast.

The company was working with a major retailer on a new endcap program that coincided with the back-to-school season. Despite the COVID-19 pandemic, the retailer’s stores remained open given its classification as an essential business. 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 it had lined up fell through. Fortunately, its banker had a relationship with TradeCap and made an introduction.

TradeCap structured 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 an alternative source of capital to ensure the timeline of the program stayed 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.

“In this difficult time, access to capital is critical for small businesses in order to reduce further disruption of supply chains,” Clinton Stanton, managing partner of TradeCap, said. “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.”