Tradewind Finance announced a $3.5 million factoring facility for a Hong Kong subsidiary of a leading family-owned and operated shirt brand based in Germany. The Hong Kong company is utilizing the facility to further improve cash flow and efficiently manage their international operations amid shifting trade policy.

With a strong brand legacy for quality shirts, the Hong Kong subsidiary is reengineering their financing options when orders for the brand's shirts started to ramp up. It had been difficult to integrate their Hong Kong business within the brand's existing credit lines, so they looked for a more flexible, globally-equipped financial partner. The HK apparel company required a financial solution that could bridge cash flow between their Asian production facilities and sales to U.S. buyers.

In the factoring arrangement, Tradewind is converting the Hong Kong company's receivables into immediate cash, ensuring a constant liquidity level and allowing them to meet the pre-payment terms of Asian suppliers and open account, 30+ day terms with U.S. buyers.

As a Germany-headquartered company with global offices, Tradewind brought expertise and an on-the-ground presence in the Asian, U.S., and European markets, making it a well-suited financial partner for the client.

MODINT Credit & Finance, an industry leader in credit management for the fashion and textile industry, introduced the Hong Kong-based deal to Tradewind. Together the firms were able to combine specialties and complete the necessary financing.

"This transaction is a perfect example of how collaboration with industry partners can make it possible to get financing across the finish line for the client, first and foremost. In this case, Tradewind and Modint teamed up, leveraged their international capabilities and network, and Tradewind was ultimately able to customize a factoring solution that addressed the client's unique working capital needs," Christian Fehmerling, Regional Commercial Leader Europe at Tradewind, says.

"Challenging times in a dynamic apparel industry require flexible partners. We're glad that this renowned client will be even better positioned to further enhance greater growth and financial success through our mutual efforts," Frans van der Hoorn, Managing Director of MODINT Credit & Finance, notes.