Working with Transcap Trade Finance How Transcap Helps Its Customers Common Lender Concerns Minimize Your Risks When Should You Call Transcap? Deals Gone Good and Bad Transaction Subordination Agreement Click Here to Obtain an Application (PDF)

Banks, Factors & Finance Companies
The Not-So-Bad: Teamwork

An importer of furniture had reached its $4 million cap under its existing bank facilities.  The company had been a customer of the large regional bank for several years and had recently expanded its product line.  In fact, it had just received a multimillion dollar order from one of the large mass merchants.

Unfortunately, while the company was great at selling and sourcing its product, it was not so good at managing its business.  It did not control its operating costs nor adequately process and collect its receivables, which inturn had impaired its cash flow.  Although the principals had a great relationship with the bank's upper management, the bank had already overextended the facility significantly further than it could rationalize at that point.  Thus, the account was on the verge of being transferred to the bank's managed asset (workout) group.

In an effort to assist his customer and hopefully improve the bank's position, a senior credit officer of the bank contacted Transcap.  Transcap agreed to take an assignment of the order from the mass merchant, buy the required furniture from the Asian supplier, and pay an independent assembler for the minor assembly and repacking performed in the United States.

The Not-So-Bad Part!!
Largely due to Transcap's involvement, all parties: the vendor, the assembler, the company personnel, and the customer, lived up to their end of the deal.  Therefore, the transaction, which took approximately 120 days to complete, resulted in additional collected profits.  These profits enabled the company to eliminate a portion of the bank overadvance and provide enough time for the company to straighten out its operations.

The Good | The Ugly