TradeCap Partners Delivers $500K Production Financing Facility to Fragrance Manufacturer

TradeCap Partners provided a $500,000 production finance facility to a fragrance manufacturer based in the Northeast. 

A steady increase in the volume of deliveries, the hiring of a new sales manager and the addition of two new brand licenses drove increased working capital needs for the manufacturer. When these factors were coupled with a lengthening cash conversion cycle due to shipping delays associated with components sourced overseas, it forced the company to search for incremental financing.

The company’s supply chain includes a mix of domestic and international suppliers. The company purchases components internationally and utilizes domestic suppliers for packaging, fragrance and contract filling. TradeCap assessed the performance capabilities of suppliers and structured a production finance facility to pay for components and raw materials shipping to the contract filler. Following completion of production, the contract filler will be paid prior to shipment.

TradeCap’s solution financed work-in-process inventory from multiple domestic and international suppliers, alleviating cash flow constraints throughout the supply chain. With the new finance structure in place, the manufacturer’s financing capacity is maximized and the stage is set for it to execute its growth plan. 

“The complexity of the client’s supply chain and our ability to structure a production finance solution around it exemplifies the flexibility of our offering,” Clinton Stanton, managing partner of TradeCap Partners, said. “Often times, all a business lacks is a creative financing structure that allows them to take their business to the next level. We believe this to be one of those situations and are excited to be a part of it.”