Tradewind Provides Reverse Factoring Facility to Electronics Company based in Hong Kong
Tradewind has closed a reverse factoring deal with a Hong Kong-based electronics company whose buyer is located in the United States. The deal marks the addition of a second supplier to the vendor finance program that Tradewind has set up for the US buyer. The electronics company specializes in smart watches, smart bracelets, and other smart accessories, as well as digital devices like tablets. They sell to global traders located in Japan, South Korea, North America, South America, Europe and Southeast Asia.
Though the electronics company was accustomed to receiving sight payment from their customers, they wanted to make an increased effort to keep winning the business of their new US buyer, so they decided to offer open account payment terms to them. Concerned that a 60-day open account arrangement would jeopardize their working capital and ability to pay their domestic suppliers, the company welcomed their buyer’s proposal for supply chain financing. The buyer enlisted Tradewind’s help once again, impressed with their services in the onboarding of their first supplier to the program.
The early funding from Tradewind’s facility, with cash advances structured in USD, equipped the electronics company with the liquidity to pay their suppliers and stay competitive in securing the orders of their customer. The company could also rest assured knowing that Tradewind provided credit protection in the case of default due to buyer’s insolvency.
As a result of Tradewind’s reverse factoring, the exporter had sufficient cash to fill requests for orders, and the buyer was able to stock up on the merchandise it needed for the season, before Thanksgiving.
“We are happy to provide services that are beneficial to both the seller and the buyer. With our funding, our client received the footing to grow their business. Furthermore, our team ensured a quick turnaround time that allowed the importer to equip for their seasonal sales under a tight schedule. The Tradewind team is appreciative for the trust the buyer had in us in making the decision to onboard a second supplier for our supply chain finance services,” states Alice Lo, VP of Sales for Tradewind Hong Kong.
Tradewind (formerly DS-Concept) maintains a network of offices all over the world, including Bangladesh, Brazil, Bulgaria, China, Hong Kong SAR, 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.