Tradewind Funds Leading Tubing Manufacturer Based in Spain
Tradewind has announced that it has provided a $500,000 non-recourse export factoring facility to a leading designer, manufacturer, and exporter of technical tubes and hoses based in Spain. The company, whose products are used in the industrial, agricultural, construction, and gardening sectors, sells domestically and exports to countries throughout Europe. It will apply proceeds from the facility to fund the working capital needs of its tubing business so it can maximize growth abroad.
Although the company was equipped with the manufacturing capacity to increase production, its growth was stagnant because it did not have sufficient working capital to take advantage of opportunities with large foreign buyers who require extended payment terms.
While the company had experienced decades of growth and success within Spain, it also offered a strategic advantage to European buyers who benefitted from a short supply chain. In order to capitalize on opportunities with customers outside of its country’s borders and expand its footprint across Europe, the company needed a working capital solution to fulfill large orders and bridge the long lead times and in-transit periods that come with exporting. Where its local factoring company in Spain failed to offer competitive prices and posed restrictions and limitations on foreign accounts receivable, Tradewind, leveraging its international capabilities, was able to carve out the company’s foreign AR while the tube producer’s bank handled the domestic AR. Tradewind’s non-recourse facility also provided credit protection in case any of the company’s buyers defaulted on payment.
“Our client had all the right characteristics for high future growth except sufficient working capital. Tradewind’s factoring, coupled with the PO financing that they received from a private investor, was the perfect solution for the client because it gave them the ability to take on orders and negotiate credit terms with large overseas buyers—ultimately allowing more room for growth,” states Brian Dowd, Vice President of Sales of Tradewind’s New York office.
Tradewind (formerly DS-Concept) 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 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.