Tradewind Finance provides USD 3 mln facility for Bangladesh-based company

Friday 4 December 2020 15:37 CET | News

Tradewind Finance has closed a USD 3 million supply chain finance facility for a Bangladesh-based garment trading company, according to the official press release.

The company sources clothing items domestically from more than 20 factories and exports to Europe, the USA, Australia, and Asia. The facility is being used to help increase sales and support open account payment terms in growing demand from overseas buyers. In the financing arrangement, Tradewind Finance purchased the invoices of the company and advanced funds to them. Rather than having to wait an extended period to receive a payment from the buyer, the company was provided quick access to capital, which strengthened their balance sheet and played a vital role in increasing their revenue. By using Tradewind's reverse factoring services, the garment company can now also pay the factories they source from sooner than they had done so previously.

As part of the arrangement, Tradewind is able to finance sales on 15-120 days open account payment terms, which positions the garment trader to work with a more diverse customer base. The facility enables the company to accept any payment terms from buyers, without impairing cash flow, and meet its working capital requirement. By providing a non-recourse financing facility, Tradewind Finance eliminates all credit risk and guarantees payment in the case of buyer insolvency.

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Tradewind Fiance, SCF, supply chain finance, Bangladesh, facility, invoice
Categories: Banking & Fintech
Countries: Europe
This article is part of category

Banking & Fintech

Industry Events