Tradewind has announced that it has provided a $2 million export factoring facility to an electronics technology company headquartered in Shenzhen. The company sells USB accessories, MP3 and MP4 players, and smartwatches to well-known brands in Europe, America, and Asia. Along with its headquarters and factories in Shenzhen, the company has also established a trading entity in Hong Kong.
Traditionally cautious in its business dealings, the electronics company required buyers to pay 30% deposit after placing an order and settle the payment before delivery. Although this stringent payment condition allows companies to avoid potential trade risks, it also discourages many big buyers who demand credit.
This year, one of the company’s major customers increased its order by 50% but at the same time requested open account terms of 30 days after shipment. While accepting this condition would have increased the company’s sales, it would have also put the company under financial pressure. In order to reduce the stress and better meet customer needs, the company decided to seek financing.
After weighing different options, the company chose Tradewind. Unlike traditional financing institutions that can only finance local companies, Tradewind, with its global network of offices, was able to adapt to the company’s unique needs and fund the Hong Kong entity directly. Tradewind’s competitive rates and ability to provide scalable funding that will grow with the company were also attractive. After Tradewind started to fund the company, the company was able to replenish its liquidity and close the funding gap quickly. In turn, it will increase production capacity, take on additional orders, and provide more buyers with credit sales.
“Tradewind is well-known for its global network and flexibility, and we are capable of supporting businesses of varying sizes around the world and structuring tailored solutions that fit their individual needs. Because of these qualities, the client chose Tradewind as their trusted financing partner, and we are pleased to help them reach their higher sales goals,” said Ms. Vicky NG, Business Development Officer at Tradewind HK who is leading the project.
The Tradewind Group provides innovative international cash flow solutions tailored for global clients. Focused on the mid-market, its core products are non-recourse factoring and supply chain finance. The group has built an unrivaled reputation for the depth of its international finance expertise by maintaining a network of offices and affiliates around the world including the USA, China, India, Hong Kong, UAE, Turkey, Bangladesh, Pakistan, Iceland, Bulgaria, Hungary, Peru and its headquarters in Germany. Combining financing, credit protection, and collections into a single trade finance facility, Tradewind offers streamlined, flexible and best-in-class services.