NEW YORK, Dec. 3, 2020 /PRNewswire/ — Tradewind Finance has closed a USD 3 million supply chain finance facility for a reputed garment trading company based in Bangladesh that sources clothing items domestically from more than 20 factories and exports to Europe, the USA, Australia and Asia. The facility is being used to help increase sales and support open account payment terms in growing demand from overseas buyers.
In the financing arrangement, Tradewind Finance purchased the invoices of the company and advanced funds to them. Rather than having to wait an extended period to receive payment from the buyer, the company was provided quick access to capital, which strengthened their balance sheet and played a vital role in increasing their revenue. By using Tradewind’s reverse factoring services, the garment company can now also pay the factories they source from sooner than they had done so previously.
As part of the arrangement, Tradewind is able to finance sales on 15-120 days open account payment terms, which positions the garment trader to work with a broader and more diverse customer base. The facility enables the company to accept any payment terms from buyers, without impairing cash flow, and meet its working capital requirement. By providing a non-recourse financing facility, Tradewind Finance eliminates all credit risk and guarantees payment in the case of buyer insolvency.
“It was a pleasure working with our client to find the right financing solution for their needs and improve liquidity along their supply chain. Our trade finance facilities continue to support apparel companies in Bangladesh like our client in achieving growth,” states Soheil Zali, Regional Commercial Director for West and South Asia at Tradewind.
Tradewind Finance maintains a network of offices all over the world, including Bangladesh, Brazil, Bulgaria, China, Hong Kong SAR, Hungary, Iceland, India, Pakistan, Peru, Turkey, UAE, and USA as well as its 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.
The content is by PR NewsWire. DKODING Media is not responsible for the content provided or any links related to this content. DKODING Media is not responsible for the correctness, topicality or the quality of the content.