Tradewind Announces Factoring Facility for Canine Screening and Security Services Company in the USA
Tradewind has closed a $1 million credit facility for a leading veteran-owned and -operated company based in the United States that provides canine screening and security services for the air cargo industry. The company conducts its services at every major international airport in the USA for the largest air cargo carriers in the sector, including Delta, American Airlines, Lufthansa, and Korean Air. The funding will help the canine solutions provider fulfill its capital needs for growth, both in the long term and for day-to-day operations, as it meets skyrocketing demand following increased security efforts in the industry.
The demand comes on the heels of a new security regulation that requires all air cargo companies to have the resources and ability to facilitate screening of 100% of their cargo by 2021, as well as the expansion of the Transportation Security Administration's network to the private sector.
Tradewind’s client was among the first group of private companies to become TSA-certified to provide canine screening services for cargo departing from US airports, which drew immediate attention to the company from air cargo carriers across the United States.
In order to keep up with the immediate demand over the next 24 months, the company will be tasked with continuously hiring new employees and purchasing new dogs who they will have to train and certify before deploying them to an air cargo site. As a result, they needed a financing solution that could support their rising day-to-day working capital needs and sustain the significant growth that lied ahead of them.
Tradewind’s factoring facility will expedite cash flow to the company, which will in turn reduce liquidity constraints and enable the company to keep building their K9 handling team and expanding their market reach. As the company's sales and accounts receivable continue to grow, the facility is expected to double to $2 million within 12 months.
“Taking into consideration the new TSA regulations for air cargo screening, the prospective growth in this industry is tremendous for our client. They have a superb management team comprised of air cargo industry experts and military veterans with the highest level of expertise in K9 handling which has enabled them to become the market leader in this industry. It’s an honor to support a veteran-owned business that works to mitigate aviation security threats and protect lives,” states Brian Dowd, Vice President at Tradewind’s New York office.
A source within the veteran business community recommended the client to Dowd and Tradewind as a trusted partner for factoring needs.
Tradewind (formerly DS-Concept) maintains a network of offices all over the world, including Bangladesh, Bulgaria, China, Hong Kong, Hungary, Iceland, India, Pakistan, Peru, Turkey, UAE, and 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.