SHANGHAI, Sept. 28, 2018 /PRNewswire/ -- Tradewind has announced the closing of a $10 million account receivable financing facility for a China-based manufacturer of various parts for the automotive, high-speed rail, and aeroplane industries. The company, with 15 manufacturing plants located in Yangtze Delta Zone, sells domestically, and exports to the US, Mexico, and Europe. It is the leading supplier in China for the well-known rearview mirror giant -SMR, which is the sole supplier of rearview mirror for Tesla and others.
Due to its consistent innovations and good reputation in the industry, the company keeps on getting larger orders with longer terms. With 15 plants fully operate, the company still has to outsource some less technological parts in order to catch up with the delivery schedule. The down payment of the raw material and outsourced part takes a great deal of the company's cash flow. While bank line and other investments ease off the pressure of the company's liquidity at first, they take over the properties, and when the amount of orders tripled this year, the disadvantages of traditional lending seem to outweigh the advantages. So, the company was forced to look for other solutions.
When comparing the different finance solutions in the market, Tradewind's customized factoring solution was proven to be the most favorable, as it can scale up with the growth of the business, while strengthen the company's credit and collections capabilities overseas. With Tradewind's facility applied, the company is able to control the share of other financial sources, and become more proactive in research and development and invests a new line to test for the mass production with the new technology it just got patent for.
"It's a great pleasure to work with a company that provides first-in-class parts to the well-known brands all over the world. What we provide is sure to be a perfect supplement to their existing finance structure, and will be crucial to their technology upgrade, as our non-recourse financing facility frees up the cash flow that will otherwise be used to pay for raw material. We are glad to witness their growth and success closely," said Fiona Li, Project Manager of Sales in Tradewind's Shanghai branch.
Tradewind provides innovative international cash flow solutions tailored for global clients. Focused on the mid-market, its core products are non-recourse factoring and supply chain finance. The group has built an unrivaled reputation for the depth of its international finance expertise by maintaining a network of offices around the world including the USA, mainland China, India, Hong Kong, UAE, Turkey, Bangladesh, Pakistan, Iceland, Bulgaria, Hungary, Peru and its headquarters in Germany. Combining financing, credit protection, and collections into a single trade finance facility, Tradewind offers streamlined, flexible and best-in-class services.
