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CBC Provides More Than $50MM to Various Clients in Recent Financings

August 04, 2015, 07:26 AM

Capital Business Credit LLC (CBC), a global commercial finance and factoring company, announced it has recently provided more than $50 million in trade financing lines of credit  to retailers, manufacturers and importers in the fashion apparel, accessories and home furnishing sectors. Based on clients’ unique needs, these financing solutions included factoring, asset-based lending, inventory support, supplier early payment programs, creative financing restructuring and other bespoke offerings.

“The diversity in financing we have issued in the last six months reflects our unique ability to design solutions to meet growing demand for flexible lending terms at almost every point in the supply chain. We understand that a need for lending elasticity in the apparel and home industries is a feature of the sector, rather than a fundamental indicator of a company’s future success, and we are positioned to help fuel growth in expanding brands when a traditional lender cannot,” said Andrew Tananbaum, executive chairman of CBC.

Representative transactions from the first two quarters of 2015 include:

  • David Textiles, Inc., a wholesale textile distributor received a $14 million factoring and credit facility in under three weeks to support temporary inventory build-up due to seasonality and increasing sales;
  • A designer and manufacturer of small appliances and accessories, outgrew its original financing agreement and turned to CBC for a full service factoring facility and a $10 million revolving credit line;
  • A growing importer of children’s apparel required additional off-season financing for vendor deposits received a $12 million revolving credit line;
  • A national off-priced retailer needed additional financing support for its direct import programs with Asian suppliers, and received a supplier early payment facility of $10 million in conjunction with a domestic trade credit line;
  • A furniture importer and manufacturer with a 100% customer concentration in the midst of a turnaround required a $3 million factoring and credit facility that their previous bank-owned factor were unable to accommodate;
  • An undercapitalized start-up importer of designer hand bags projecting over $30 million sales in its first year required a $5 million line of credit to support pre and post-production financing.

“As the U.S. housing market rebounds, the soft home goods business is exploding, driving exponential demand for our textiles. Unfortunately, our existing credit facility did not allow us to scale manufacturing in line with our orders. CBC’s flexible financing structure accommodated our current growth and positioned us to capitalize on a long-term production trend,” said Ben Cohen, President of David Textiles, Inc.

Established in 1987, Capital Business Credit LLC is a commercial finance company specializing in providing creative supply chain financing solutions. The company’s service offerings include: full-service factoring; single debtor credit coverage; letters of credit; accounts receivable management services and inventory lending. CBC Trade Finance, a division of CBC, provides supplier early payment solutions for U.S.-based importers working with Asia-based suppliers (exporters). Capital Business Credit is based in New York, with offices in Hong Kong; Shanghai; Los Angeles; Charlotte, NC; and Fort Lauderdale, FL.

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