Tradewind closed a 2 million GBP reverse factoring facility for a reputable UK-based fashion brand and retailer that sells menswear, womenswear, and accessories. Having office locations that intersect with the client’s suppliers in China, Turkey and Europe, Tradewind provides faster funding to the suppliers and the UK retailer also benefits from lower borrowing costs. As a result, Tradewind is instrumental in lowering the retailer’s operating costs and in better managing its sourcing needs. It provides financing for sales made on 60 and 90-day open account terms. The client also chose Tradewind because of its capacity to structure the facility in three currencies—USD, EUR, and GBP.
Talks of the facility began when another UK retailer referred the fashion brand to Tradewind. The client was in the midst of a transitional period and hence had trouble establishing a credit line from a traditional bank.
Apart from its international capabilities and high reputation within the retail industry in the UK, Tradewind proved to be the most suitable partner for the clothing company because of its ability to finance the full supply chain using financing and risk mitigation techniques to optimize the management of working capital and liquidity. The vendor finance program Tradewind implemented adapted to the existing arrangements the client had with its vendors with minimal intrusion or alteration to its current operations. With the facility in place, the retailer is projected to boost supplier performance and enhance the brand’s viability.
René Pastor, Tradewind President of Global Commercial, states: “Tradewind was able to structure a customized solution for our client supporting not only their financing needs in multiple currencies, but also lowering their operating cost by accommodating their local sourcing team. The client now has improved cash flow and their operating performance has improved exponentially. After Brexit, UK retailers are facing unseen challenges. Tradewind works alongside these retailers and provides alternative trade finance options when traditional lines of credit are harder to obtain.”
Tradewind is an international trade finance group headquartered in Germany with more than 20 offices globally. Tradewind works with SMEs worldwide to provide non-recourse factoring and supply chain financing. With over 150 employees located in 15 countries, speaking over 15 languages, our staff offers world class customer service and truly understands global trade.