A startup laser cutter manufacturer in Shandong, China has received an export factoring facility from Tradewind Finance worth EUR 600,000. The facility will be utilized by the company to support its exports to Europe and the United States.
Since transforming from a laser cutter trading company, the manufacturer has released a series of flagship products and attracted a significant number of overseas buyers. As a newly established business, this startup was dependent on secured bank loans and its own capital for operation. Despite maintaining stable financial results during the shock of COVID-19, the company faced challenges with working capital and bank financing. Due to its limited financial resources, advance wire payments became the only acceptable payment method, which gradually reduced the profitability of the company.
As a result of Tradewind’s reputation as a provider of alternative financing, the company sought to use Tradewind for a flexible financing solution. Using the EUR 600,000 funding provided by Tradewind, the manufacturer bridged its working capital shortfall and was able to take large-scale orders with 120-day payment terms.
According to Andy Zeng, Vice President of Sales at Tradewind China: «Unlike the traditional financing method, Tradewind’s factoring product mainly relies on the credit standing of the buyer. Tradewind’s customized service was instrumental in lowering the client’s trade risks and accelerating the cash flow cycle. We look forward to becoming its long-term financial partner to encourage even greater growth.»
About Tradewind Finance
Founded in 2000, Tradewind Finance maintains a network of offices all over the world, including Bangladesh, Brazil, Bulgaria, China, Hong Kong SAR, Hungary, Iceland, India, Pakistan, Peru, Turkey, UAE, and the USA as well as the headquarters in Germany. Combining financing, credit protection, and collections into a single suite of trade finance products, Tradewind brings streamlined, flexible, and best-in-class services to the world’s exporters and importers.