July 2004—Transcap, A Wells Fargo Company, the leading provider of trade finance and purchase order finance, has now issued letters of credit supporting over two billion dollars ($2,000,000,000) in transactions.  The Transcap Letter of Credit program provides up to 100% of the cost of manufacturing inventory ranging from OEM items to various consumer goods such as apparel and housewares.

“We have provided funding for dozens of distributors and manufacturers that outsource production with annual sales ranging from $2 million to over $200 million,” says Ira J. Edelson, President of Transcap.  “By using Transcap to fund the manufacturing of the goods, companies free up their working capital to fund marketing, sales, and merchandise development.”

In contrast to banks, finance companies, and factors that generally rely on the quality of existing assets to provide any letter of credit financing, Transcap relies on the quality of the transaction and the company to fund up to 100% of the amount of the letters of credit needed.

According to Edelson, short term funding issues create a dilemma for both the companies and their lenders.  “While short term needs can be met through costly long term equity infusions, our transactional capital is the less expensive, preferred alternative,” Edelson says.

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