Blog/News

ETC COOKS UP A DEAL-IGHTFUL FACTORING FACILITY FOR A WHOLESALER OF FROZEN VEGAN MEALS.

VP Ashley Orlando discovered the client through her extensive network and contacts in the plant-based food and beverage industry. Two years ago, the client created a Vegan frozen lasagna that quickly gained popularity and flew off the shelves. Like an Italian grandma serving a guest in love with her food, the client is back in the kitchen and using ETC’s patented financial sauce to cook up more Italian staples like vegan ravioli, mozzarella sticks, meatballs, and arancini. 
 
After rolling out to a good start in 2022, the client forecasts robust sales growth for 2023 as they continue to open more doors and gain precious shelf space. But they needed the working capital to get there. Through a referral, the client approached Ashley and ETC with the perennial problem of cash flow crunches caused by a disparity in payment terms between customers and suppliers. 
 
Since the client’s retail customers were paying on net 30-day terms, the client consistently ran into cash crunches with their copacker who provided only net 10-day payment terms. Although the client had several promising talks to open more doors with larger accounts, the logistics proved difficult as each new account required an industry standard of net 30-day terms or greater which only increased the client’s financial burden with each additional order. 
 
Looking to thaw the client’s frozen growth, ETC opened a factoring facility to accelerate the payment of advance receivables. With a bit of good history, the client has the option to add a PO funding facility, allowing them further flexibility to juggle the working capital required to scale rapidly. ETC is thrilled to welcome this new client into our expanding food and beverage portfolio and proud to help entrepreneurs creating sustainable, earth and health friendly products. No animals were harmed in the making of this facility.

Don’t hesitate to contact us here ➡️ https://lnkd.in/e84Ti6hg for questions about how Express Trade Capital can help your business. 


COLUMBUS DAY HOLIDAY HOURS.

Due to the upcoming Columbus Day Holiday, our office will be closed on Monday, October 10th in observance of the holiday.

Please contact your account officer and plan accordingly during this time.

Happy Columbus Day to all!


ETC LETS THE DOGS OUT WITH $4.5 MM FACTORING AND 500K PO FUNDING LINES FOR A CANINE BAKED GOODS CO.

For over 20 years, the client dug a niche producing bakery-style specialty dog treats exclusively out of their facilities in Arkansas.  The treats are human grade, decorated with dog friendly frosting, and intended as special treats for pets to enjoy on birthdays and holidays.  Their customer base ranged from smaller and mid-sized pet shops to big box pet retailers. 

Early in 2022, the client realized they needed help to manage cash flow gaps necessitated by increased demand from larger retail customers. After sniffing around the market, they found Express Trade Capital to help them unleash the beast of big growth. A current Express client was happy to make the referral.

With prior annual sales of $8MM growing to $12MM, the client was unwilling to sit or stay in place.  To facilitate growth, ETC laid out two bowls of funding: a factoring line capped at $4.5MM and a PO funding line of $500,000.  The two lines will expand, contract, and otherwise adapt based on the client’s sales revenue and history.  The client is now free to fetch as many POs as they can chew.  The deal was led and brought to heel by Ashley Orlando who chased the tail of required documents and smoothed the path for onboarding.  According to Ashley, the client was a pleasure to work with throughout the onboarding process and we are excited to build a long-standing financing relationship with such a great team while deepening our experience in this industry.

This deal emblematic of Express’ commitment to ensure every business owner we serve has their day in the sun.  The client also earned a treat for demonstrating that old companies can still learn new tricks. Though Express wouldn’t let sleeping dogs lie when it came to funding rabid growth, everyone got to sleep like a dog after closing this one.

Since 1993, ETC has helped companies grow, fulfill purchase orders, mitigate risk, and navigate supply chain issues, all while maintaining and enhancing their equity. Our consultative approach leverages our combined 100+ years of experience to ensure clients get maximum support to handle any obstacle. ETC specializes in financing companies through factoring, purchase order funding, letters of credit and inventory-based lines of credit. In addition, ETC offers back-end support from logistics to warehousing to credit protection. 


Don’t hesitate to contact us HERE for questions about how Express Trade Capital can help your business.


HOLIDAY UPDATE: October 5, 2022

Please note there will be no Factoring advances on Wednesday, October 5, 2022 in observance of Yom Kippur. PO Funding & LC transactions will be extremely limited. Please plan accordingly.


Express Completes $7MM Factoring and $3MM PO Funding Deal for Hong Kong-based Denim Wholesaler.

In September 2022, Express Trade Capital Inc. secured a deal for a Hong Kong-based denim manufacturer who will work directly with top U.S. retailers who previously bought their denim goods through indirect wholesale channels.
 
The prospect reached out to Express to expand their U.S. wholesale presence which would allow them to take advantage of growing interest from top U.S. retailers. Led by AVP Dina Davletshina and VP Drew Cohen, ETC’s team worked directly with the client to develop a uniquely tailored program for their U.S. entity. 
 
To support an expected annual sales revenue of $15MM, ETC created a $7MM factoring facility and a $3MM purchase order funding line. Prior to signing with ETC, the team assisted the client with setting up their U.S. entity and bank account. ETC will also handle the client’s shipping and logistic needs, ensuring goods arrive promptly and POs are fulfilled timely. According to Dina Davletshina, who shepherded the deal to smooth completion: “our team worked hard to overcome several challenges inherent in funding a company that was technically new on paper but had many years of good history overseas. Although this was a non-traditional prospect, their customer base, product line and management team all fit well into our family of clients, so we rolled up our jeans and got creative. Overall, we were able to get the comfort and security we needed to get this deal done right.”
 
ETC specializes in financing companies through factoring, purchase order funding, letters of credit and inventory-based lines of credit. In addition, ETC offers back-end support from logistics to warehousing to credit protection. Since 1993, ETC has helped companies grow, fulfill purchase orders, mitigate risk, and navigate supply chain issues, all while maintaining and enhancing their equity. Our consultative approach leverages our combined 100+ years of experience to ensure clients get maximum support to handle any obstacle.
 
Don’t hesitate to contact us HERE for questions about how Express Trade Capital can help your business. 



SUPPLY CHAIN UPDATE: U.S. Rail Strike has been Deterred.

U.S. Rail Strike has been Deterred as Freight Railroads and Unions Reach Tentative Agreements. Earlier today, the 46th President of the U.S, Joe Biden has released a statement on the tentative Railway Labor Agreement. It reads as follows:

“The tentative agreement reached tonight is an important win for our economy and the American people. It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America’s families and communities got deliveries of what have kept us going during these difficult years. These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned. The agreement is also a victory for railway companies who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come.

I thank the unions and rail companies for negotiating in good faith and reaching a tentative agreement that will keep our critical rail system working and avoid disruption of our economy.

I am grateful for the hard work that Secretaries Walsh, Buttigieg, and Vilsack, and NEC Director Deese put into reaching this tentative agreement. I especially want to thank Secretary Walsh for his tireless, around-the-clock efforts that delivered a win for the hard working people of the US rail industry: as a result, we will keep Americans on the job in all the industries in this country that are touched by this vital industry.

For the American people, the hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought. With unemployment still near record lows and signs of progress in lowering costs, tonight’s agreement allows us to continue to fight for long term economic growth that finally works for working families.”

The Association of American Railroads released details of the agreement, which indicates that the new contracts provide rail employees a 24 % increase during the 5 years period from 2020-2024, including an immediate payout on average of $11,000 upon ratification, following the recommendations of Presidential Emergency Board (PEB) No. 250.

To read the full statement from AAR, you may click HERE.

If you have any additional questions, please don’t hesitate to contact us here.

References:

https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/15/statement-by-president-joe-biden-on-tentative-railway-labor-agreement/


Trade Update: USTR Declares for Continuation of China 301 Tariffs.

On September 02, 2022 the United States Trade Representative declared a continuation of China 301 Tariffs in a press release.

It reads as follows:

“WASHINGTON – Today, the Office of the United States Trade Representative confirmed that representatives of domestic industries benefiting from the tariff actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation have requested continuation of the tariffs. Accordingly, as required by statute, the tariffs did not expire on their four-year anniversary dates and USTR will proceed with the next steps as provided in the statute.

USTR’s formal notice of the continuation may be found here. Details on the next steps in the four-year review process will be set out in subsequent notices.

In May 2022, USTR commenced the statutory four-year process by notifying representatives of domestic industries that benefit from the tariff actions of the possible termination of those actions and of the opportunity for the representatives to request continuation. Because requests for continuation were received, the tariff actions have not terminated and USTR will conduct a review of the tariff actions.”

If you have any additional questions, please do not hesitate to contact us HERE.

References:

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2022/september/ustr-receives-requests-continuation-china-301-tariffs


HAPPY LABOR DAY WEEKEND FROM ETC!

Happy Labor Day weekend to our employees, clients and partners. The world runs on your contributions and you all deserve recognition. We hope you have a great holiday weekend.    


LABOR DAY HOLIDAY HOURS.

Due to the upcoming Labor Day Holidayour office will be closing Friday, September 2nd at 3 p.m. EST and be closed on Monday, September 5th in the observation of the holiday.


Please contact your account officer to plan accordingly during this time frame.


We greatly appreciate your understanding and apologize for any inconvenience.


Happy Labor Day to all!


TRADE UPDATE: September 2022 Webinar Schedule Dates Announced by NCSD.

On August 8th, U.S. Customs and Border Protection announced September 2022 webinar schedule hosted by National Commodity Specialist Division (NCSM) in CSMS #52901250.

You may find the registration links below:

Thursday, September 1, 2022 | 1:30 p.m. EDT – Classification of Vehicles of Chapter 87 and Saying Hello to Hybrids.

Tuesday, September 13, 2022 | 12:00 p.m. EDT – Other Articles of Base Metals.

The full message reads as follows:

“The Office of Trade’s National Commodity Specialist Division and the Office of Trade Relations is excited to present a series of approximately 40 commodity-specific, educational webinars to support Customs and Border Protection’s internal and external customers. The webinars began in February and will run through September 2022.  Each webinar will be approximately an hour.  The date and time will vary, so please be sure to check the time for each webinar.   

The schedule for the September webinars is below.  Please click on the webinar title to register.  The link to join will be sent via email no later than 9 a.m. on the day of the webinar. We look forward to your participation!”

If you have any additional questions, please do not hesitate to contact us HERE.

References:

https://content.govdelivery.com/accounts/USDHSCBP/bulletins/3273582