Blog/News

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. 



Short-Term Future for Retail: Not Looking Great

By: Carli Valinoti – Express Trade Capital, Inc.

It’s not uncommon in today’s retail market that large companies who have been around for years are forced to file for bankruptcy. With growing competition from online retailers, including Amazon, stores have continued to see a decrease in foot traffic and overall sales. Retail stores have accrued debt from overstocking and increasing rent prices. If large, well known retailers such as Forever 21, Barneys New York, and Payless can’t beat the online retail presence, what does the future hold for smaller retailers?

Even with the upcoming holiday season, retail sales are projected to decline. According to the US Commerce Department, retail sales fell in September by 0.3%, the first time since February. Concerns that manufacturing-led weakness and trade tariff challenges are hitting the broader market could potentially have a negative affect on consumers spending habits. If consumers decide to keep their spending to a minimum, retailers should prepare for the potential continuation of declining sales.

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Section 301 Tariffs Increase to 30 Percent on Chinese Goods Suspended

After meeting with Vice Premier Liu He of the People’s Republic of China, President Trump announced in a news release on October 11, 2019 that the duty increase from 25% to 30% on List 1, 2, and 3 products would be suspended. A final decision will be made later regarding the additional duties scheduled to go into effect December 15, 2019 for List 4B commodities.

Information regarding the phase one deal can be found in the White House news release here.


IF YOU IMPORT FROM THE E.U.

Following a World Trade Organization decision paving the way, the U.S. Trade Representative (“USTR”) has published a list of products form E.U. origin which will be subject to additional duty rates of 10% or 25% ad valorem, effective October 18, 2019.

We expect that a FEDERAL REGISTER notice will be published with the details including confirming the definition of the October 18 effective date; effective dates are commonly based on the date of entry. 

A link to the list of products, countries and additional tariff rates may be accessed at:  https://ustr.gov/sites/default/files/enforcement/301Investigations/EU_Large_Civil_Aircraft_Final_Product_List.pdf

As with other tariffs, close coordination with your carrier and EXPRESS representative is needed to avoid duties assessed to shipments arriving before the effective date.  EXPRESS Trade Capital, Inc. is available to answer your questions, help assess impact to your business and discuss mitigation strategies. Reach out to us at logistics@expresstradecapital.com


Recycled Retail

By; Carli Valinoti, Express Trade Capital

One of the newest sustainability trends is making old garments new again. Evrnu, a Seattle-based textile-technology startup, is making old clothes and fabrics into new fibers that can be used for recyclable fashion.

Although their products are still being tested, Evrnu has just launched a limited run of recyclable unisex sweatshirts for Adidas by Stella McCartney, calling them “EVER-new.” The hoodies will not be available for the public until 2020 but will be given to athletes to promote the new sustainable line. “Right now, in the U.S., consumers dispose of about 80% of their textiles directly into their garbage can. That’s the behavior we’re really trying to tackle,” said Stacy Flynn, chief executive and co-founder of Evrnu. Recycled textiles can be made into premium fibers which can be dyed and woven into new fabrics made for all different types and styles of clothing. In 2016, Evrnu teamed up with Levi’s Jeans and launched a prototype of jeans made only from repurposed cotton T-shirts.

Consumers are becoming more aware of certain industries’ toll on the environment, including the fashion industry. Although creating new fibers still has some detrimental impact, the process uses a fraction of the amount of energy and chemicals used to make polyester clothing. These recycled garments may end up having a higher price-point, but as more people become aware of how sustainability can help the environment, people may be willing to pay more.

ETC takes great pride in working with sustainable and eco-friendly companies. Contact us for all your factoring needs!


If you Import from China

By; Carli Valinoti, Express Trade Capital 

After meeting with President Xi over the weekend, President Trump announced decisions regarding the bilateral trade dispute. The President announced that while current tariffs will remain in place, he will not move forward with additional tariffs as negotiations continue. Therefore, there are no immediate plans to implement Tranche or List 4 trade-remedy tariffs.

The United States Trade Representative recently concluded seven days of hearings on the proposed List 4. The testimony and comments solicited from the public as part of the List 4 review may influence the products to be included and tariff rate if and when any additional trade-remedy actions are taken. But for now, any action on List 4 is on hold.

If you import from China, Express Trade Capital is here to assist with trade strategies to minimize the impact, apply for exemptions, and process refund claims where exemptions have been granted. Click here to contact Express Trade Capital for expertise and support. We are here to help.


IF YOU IMPORT FROM MEXICO

By; Carli Valinoti, Express Trade Capital 

Late Friday night the President announced successful negotiations with Mexico.  With a signed agreement addressing illegal immigration, the President has suspended indefinitely the planned tariffs against Mexico. 

The 5% tariff on goods from Mexico will not go into effect on June 10, 2019.  


Possible Rising Tariffs at the Mexican Border

Carli Valinoti, Express Trade Capital

President Trump has announced plans to impose 5 percent tariffs on all goods imported from Mexico, rising to as high as 25 percent until – according to the White House – the Mexican government stems the flow of migrants. While most specifics are not yet known – conceptually, tariffs will become effective June 10 and gradually increase by 5 percent each month until they reach 25 percent in October.

What we still don’t know:

  • If the action is to be administered by the date of export
  • If all exports from Mexico to the US are covered including non-Mexican origin goods exported from Mexico and the US goods returned
  • Whether NAFTA benefits for duty and merchandise processing fee will be allowed
  • Whether these tariffs are eligible for drawback, among others

Contact us today to learn about ETC’s trade protection financing options.


Trade War with China Rages On

Sadie Keljikian, Express Trade Capital

Per last week’s announcement, the White House has raised existing tariffs on $200B worth of Chinese imports from 10% to 25% and is now threatening new tariffs of up to 25% on an additional $300B worth of Chinese imports as part of its ongoing trade war with China. The latest list targets a wide variety of goods, including apparel, accessories, food and beverage products, and livestock.   

President Trump seems optimistic about reaching an agreement with Chinese President Xi Jinping and downplays the conflict as a “little squabble…because we’ve been treated very unfairly for many, many decades.” The proposed changes will likely take effect in late June or July unless a trade agreement can be reached before then. Importers should begin preparing to either pay the newly raised tariffs or acquire their goods elsewhere.   

Talk to our team today to learn how ETC can help you plan for the increased costs your business will incur due to the new tariffs and how to protect your business during these uncertain times.   


Tariffs on Chinese Imports May Rise Again

Sadie Keljikian, Express Trade Capital

Due to delays in establishing a trade deal between the US and China, the President unofficially announced plans to raise the trade remedy tariff from 10% to 25% effective Friday. This will seemingly apply to all List III goods. The President also suggested a possible extension of the trade remedy tariffs to all imports from China.

Although an official notice has not been published yet, it is wise to prepare for the tariff increase as of May 10 if you import any included goods from China.

Contact us today to learn about ETC’s trade protection financing options.