A returning client of Tradewind Finance has entered into a new partnership with the financial solutions provider to replenish liquidity for their seasonal business, which arranges customer loyalty campaigns for European retail chains. As part of the campaigns, the client, also based in Europe, supplies kitchenware and grills to retailers that they use to gift to their most loyal customers. Tradewind has provided a EUR 4.9 million credit facility for the client in the arrangement.
Customer loyalty programs work by allowing shoppers to accumulate points with their purchases that they can put toward retrieving a prize. When a certain amount of points are reached, the shopper earns their reward.
Orders are placed by retailers 5-7 months ahead of time and suppliers for the reward programs require 30-50% of payment in advance, which can have the effect of creating liquidity bottlenecks for the client. Given the long stretch of time from production to delivery to payment of invoices by retailers, the facility line from Tradewind is being used by the loyalty campaign company to pay suppliers and to finance further orders, bridging any cash flow gaps from start to finish.
“We are thrilled to work together again with our client to unlock capital for their business and support their success. By taking the time to find a solution that meets their specific goals and by using a flexible approach with our financing, the Tradewind team has made sure that our client is well-equipped to carry out orders with their retail partners smoothly,” Christian Fehmerling, Regional Commercial Manager Europe, said.
To learn more about Tradewind’s trade finance solutions which enhance cash flow and reduce credit risk, visit Tradewind’s website: https://www.tradewindfinance.com/
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.
