Tradewind has provided a £450,000 trade finance facility to a UK-based e-commerce retailer that sells flooring products directly to consumers online. Tradewind’s supply chain financing will allow the e-tailer to keep the right amount of inventory in stock so it can make deliveries on time to its customers for a large selection of products. At the same time, with the funding in place, the company can pay its vendors in China on TT terms before items are shipped and maintain a steady cash flow level while waiting for payment from its customers.
The e-tailor was referred to Tradewind after its banking line had been maxed out and it was looking for additional liquidity. As some banks had restrictions imposed on them when funding into China, Tradewind proved to be an attractive alternative to traditional loans, facilitating access to this market with its Shanghai location. Tradewind is financing sales in GBP and USD on 90-day payment terms; its financing complemented the company’s bank facility, ensuring that the e-tailer can deliver on time in full to their customers despite having such a wide range of products.
As demand in the innovative flooring industry is variable and marked by uncertainty, partially due to its ties to the real estate market, the company strived to decouple supply from demand, which is why Tradewind’s funding was pivotal in securing sufficient inventory. Tradewind’s ability to understand the e-tailer’s supply chain and create a tailored solution using its international capabilities made it the most suitable financing partner.
“Due to the uncertainty of Brexit, many UK firms face greater systematic risk. Our solution enabled the client, a fast-growing e-commerce retailer, to keep a high level of inventory despite a large number of SKUs while also maintaining a good cash flow level. Our international capabilities not only solved the client’s immediate needs, but also lowered the client’s operating costs. With our help, the client could be on schedule in its deliveries and in a better position to negotiate with their suppliers,” states Luhan Tang, Head of Tradewind’s East Asia division.
Tradewind maintains a network of offices all over the world, including Bangladesh, Bulgaria, China, Hong Kong, 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.
