TradeCap provides USD 4 mln trade finance facility

TradeCap has identified inventory in-transit and located in domestic third-party warehouses that was pre-sold under customer purchase orders. TradeCap provided availability on the inventory at 100% of cost allowing the company to immediately curtail payables with key suppliers. The company also structured future payments to suppliers on a Documents against Payment basis to ensure future presold inventory was paid for in full following shipment.

TradeCap’s solution bridged the incremental capital needs created by growth and accelerated payments to suppliers enabling them to continue to produce and ship. Once inventory was delivered and invoiced, the company utilised its factoring facility to repay TradeCap and provide additional working capital needed to support growth.