Tradewind Finance has closed a USD 1.8 million export factoring facility for a book trader that mainly sells to well-known publishers in Europe and the USA. The funding allowed the Guangdong-based company to maintain sufficient cash flow to deal with the complexities of trade.
Established more than 10 years ago, the company has built strong relationships with distinguished buyers and exports USD 6 million every year. Though the company was able to keep its existing business accounts running smoothly, its efforts to win additional large open account orders were stymied by a working capital shortage.
The exporter attempted to apply for bank loans, but its asset-light business model and lack of security pledges proved to be disadvantages. Limited by weak cash flow, the company was forced to refuse orders with payment terms that they could not support, even if those orders were from regular buyers. Lack of liquidity became a bottleneck for the company’s development.
To accelerate its cash flow and grow its business, the company turned to Tradewind, a reliable liquidity provider with 22 years of experience in trade finance. The USD 1.8 million facility provided by Tradewind enabled the trader to take on large orders and offer payment terms of 45 to 90 days with confidence.
“As our client’s financial partner, we were able to help them advance the working capital tied to their receivables so they could arrange payment to suppliers in a timely manner, making them more competitive. Furthermore, our credit protection and collections services reduced trade risk for their business. Finally, Tradewind’s strong network with brands across the world assisted them in managing their buyer portfolio,” said Dickson Au, Regional Commercial Director – Far East, at Tradewind Hong Kong.
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, 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.