International Trade Sets New Highs at West Coast Ports
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Container traffic into Southern California ports has climbed 26% higher than last year's record pace, say port directors. Cargo back-ups in 2004 started building in late spring. Due to ambitious efforts to ward off issues early, shipping experts do not expect the same congestion problems this year. Railroad and port companies have added equipment and workers. In addition, terminal gates extended their hours. While trucking companies and retailers remain skeptical, exports from China and other countries continue to increase. Click here for more information about avoiding shipping delays. |
Importance of "Made in the U.S.A" Decreases
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Hand and power tool distributors find that customers rate quality and availability higher than the location of where the tool was manufactured, says Progressive Distributor magazine. A survey conducted early this year found that "Made in the U.S.A" finished last on a list of six factors trailing quality, availability, durability, price and brand name. Distributors and executives said that the gap in quality between domestically-produced goods and imported products has narrowed considerably, with only 44% of respondents agreeing that U.S. made tools are superior.
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New Deal Highlights
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$12 Million Commitment
Background: A commissioned agent specializing in sourcing and selling branded off price apparel had the opportunity to expand its business threefold and become a full service distributor. The company needed increased financial support to handle the influx of business and tightened cash flow resulting from the required additional infrastructure.
An established relationship with a factor provided advances on accounts receivable. But, the major-branded domestic manufacturer required LCs to support purchases of the large transactional volume of inventory made available to the company.
The short notice given the company to purchase the goods, coupled with a lack of "hard" sales, made for a challenging structure. Financial options included an equity infusion, which the existing shareholders rejected because they feared a loss of control.
Funding Solution: Utilizing a Transcap Trade credit facility, letters of credit were issued to the manufacturer allowing the company to capitalize on its increased opportunities without giving up equity. The ability to underwrite the intangible value of the brand, control of the resale of the goods and the credit of the potential buyers were keys to overcoming the transaction obstacles and allowing the company to succeed.
$8 Million Commitment
Background: A company was involved in importing packaging supplies for distributors selling to major OEMs. Originally a manufacturer's rep, the company's owner saw an opportunity to become a direct importer in a product line that was once made by domestic manufacturers. With some initial backing from investors, the customer base and the overseas source of supply were established. However, the volume of business grew dramatically in a short time, and the overseas supplier began requiring LCs to support inventory purchases.
Funding Solution: Transcap established a purchase order finance program which included letters of credit to overseas suppliers and advances for freight and duty payments. The company is now penetrating and servicing a market once controlled by domestic manufacturers. |
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TRANSCAP
The Premier Provider
of Purchase Order and
Trade Finance Solutions
Transcap, A Wells Fargo Company
900 Skokie Blvd
Northbrook, IL 60062
847-753-9600
www.transcaptrade.com
Click here to learn more
about Purchase Order Trade Finance and how Transcap can
help your customers.
In the June 2005 issue of the ABF Journal:
"Financing Inventory in Transit: Perilous Waters for Asset Based Lenders"
by Paul Schuldiner, Transcap's National Business Development Director
Click here to find out more
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Transcap Included On International Awards List
Trade Finance Magazine cites Transcap as top U.S. based company for "Best Trade Finance Boutique" category.
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