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TradeCap Partners Supports Feeding America Initiative

April 06, 2021, 08:00 AM
Filed Under: Purchase Order Finance

TradeCap Partners recently closed a $2.5MM Purchase Order Finance Facility for a West coast based consumer packaged goods company. The venture capital backed company partnered with a major wholesaler to contribute to Feeding America.

The Company secured orders for a pallet program distributed to all doors of the wholesaler. Given the size of the program and delivery dates inside a 30-day window, purchases of raw ingredients and co-packing needed to commence immediately. Open credit extended by the co-packer was fully utilized as a result of the Company’s growing e-commerce business. They needed a fast solution to satisfy terms of the co-packer allowing them to execute and complete larger volume production runs to fulfill the orders.

The Company was introduced by both their consultant and asset-based lender that had an existing intercreditor agreement established with TradeCap. Following the initial conversation with the Company, TradeCap engaged the next day. TradeCap worked with the Company and co-packer to structure a production finance solution allowing ingredients to be sourced immediately. The facility provided availability for 100% of the costs, including ingredients, packaging and co-packing related to production of the goods.

TradeCap’s production finance solution allowed the co-packer and Company to scale production, meet the compressed delivery date schedule and fulfill the orders and their contribution to Feeding America.

“With the continued health and wellness trends of consumers and their desire for better for you brands, our team is seeing more and more opportunities in the CPG space. We have a depth of expertise in working with brand companies and structuring non-dilutive capital solutions allowing them to scale production and grow their businesses. There was an added bonus in working with this client given we were able to provide a growth capital solution and contribute to the greater cause of fighting hunger”, remarked Clinton Stanton, TradeCap’s Managing Partner.

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