Tradewind has announced the closing of a $10 million AR financing facility for a China-based manufacturer of various parts for the automotive, high-speed rail, and airplane industries. The company sells domestically and exports to the US, Mexico, and Europe. It is one of the leading Chinese suppliers for the well-known rearview mirror giant SMR, which sells these parts to the premier American carmaker, Tesla.
Due to consistent innovations and a solid reputation in the industry, the company had been receiving an influx of larger orders with longer payment terms when it first considered Tradewind for financing. With 15 plants in operation, it still had to outsource some basic parts in order to keep up with the delivery schedule. Consequently, the down payment on these outsourced parts, as well as on raw materials, consumed a great deal of the company’s cash flow. While its bank line and other investments eased the pressure on its liquidity at first, the company soon encountered a cash flow crisis after it expanded its operations and saw its orders triple. After recognizing the limits of traditional lending, the auto parts manufacturer decided to look for other solutions.
The company chose Tradewind as its preferred financial partner because of the firm’s customized financing arrangements, scalable funding that can increase as business grows, and its ability to strengthen the company’s credit and collections capabilities overseas. With Tradewind’s facility in place, the company is able to better allocate its capital, become more proactive in research and development, and invest in a new production line.
“It’s a great pleasure to work with a company that provides first-in-class parts to well-known brands all over the world. Tradewind’s cash flow solutions are a perfect supplement to their existing finance structure, and will be crucial to their technology upgrade, freeing up the capital that would otherwise be used to pay for raw material. We are glad to contribute to their growth and success story,” said Fiona Li, Sales Manager for Tradewind Shanghai.
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.