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TradeCap Partners Provides $800,000 Production Finance Facility for Integrated Security Solutions Company

April 29, 2022, 06:00 AM
Filed Under: Security Systems

TradeCap Partners closed an $800,000 production finance facility for a North Carolina based integrated security solutions company.
 
Two years of reduced security infrastructure spending from state and municipal customers resulted in losses and reduced working capital. Entering 2022 with constrained cash flow, the company was having difficulty sourcing capital to support an uptick in business. Previously delayed customer projects were being brought back online and the company secured several purchase orders with overlapping delivery dates.

Reduced supplier credit limits and cash flow, in addition to higher than normal working capital needs to support sourcing of equipment, were jeopardizing the company’s ability to perform. Availability under their factoring line was maxed out and there were no additional assets to leverage. Knowing TradeCap’s production finance capabilities, the factor introduced their client.

TradeCap worked quickly to assess credit limits with each supplier, open AP obligations and needs to support the various projects. A facility was structured around supplier terms and cash flow needed to maintain terms with suppliers and complete installation for the multiple projects. The 15+ suppliers in the supply chain had various lead times, some up to 8 weeks, and either required prepayment with placement of the order or payment on terms. TradeCap’s facility accommodated both as well as the upfront costs needed to complete each project installation.

TradeCap’s financing enhanced supplier terms further supplementing the company’s existing cash flow, allowing the projects to be fulfilled. With TradeCap’s production finance facility in place, the company has a new source of liquidity to complement its factoring facility and support growth.

Clinton Stanton, TradeCap’s Managing Partner, remarked, “This new relationship exemplifies the depth of TradeCap’s purchase order financing offerings which includes production and work-in-process financing for domestic manufacturers and value-add distributors completing installations. Our ability to provide this type of financing alongside traditional trade finance differentiates us in the market.”







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