Blog/News

High-End Footwear Brand Unable to Secure Financing

Client

Australian-Owned sneaker company

Issue

The client needed factoring, purchase order financing, and logistical solutions. Although the company was in good financial standing, banks were unwilling to take on the risk since the its ownership structure contained foreign entities and the CEO had only recently relocated to the US.

He was looking for a specific arrangement: factoring and purchase order financing under one roof from a financier who had more flexibility than a bank and would walk him through the process, since financing agreements function differently in the US.

Solutions

We quickly evaluated their customer list and purchase orders, walked them through the process thoroughly and began financing the business immediately, all the while ensuring that their management was informed and aware of each step of the process.


Foreign Cosmetics Manufacturer

Foreign Cosmetics Manufacturer

Client

A foreign manufacturer of cosmetics that deals with a number of large pharmacy chains in the United States.

Issue

The client lacked the funds to purchase and ship the raw materials it needed to fulfill large orders from its U.S. customers.

Solutions

Express Trade Capital issued transferable letters of credit to our client’s suppliers and advanced funds against a combination of the client’s receivables and purchase orders. We also solved the client’s logistical problems by taking care of customs clearance and distribution. In the end, through our efforts the client was able to meet demand and maximize its profits.

 


Domestic Manufacturer of Sweaters Unable to Fulfill Large Orders

Domestic Manufacturer of Sweaters Unable to Fulfill Large Orders

Client

A U.S.-based manufacturer of sweaters.

Issue

The client required yarn supplies from overseas providers, but its credit line was exhausted and it did not have the cash on hand to purchase the raw materials it needed to fulfill large orders.

Solutions

We issued letters of credit for the purchase of materials from our client’s supplier and advanced funds against the client’s receivables and purchase orders. We also oversaw every step in the shipment of the yarn from China and Bangladesh into the United States, ensuring that our client could continue to compete and keep up with demand.

 


Shipment of Faberge Eggs to Collector

SHIPMENT of Faberge Eggs to COLLECTOR

Client

A major global company engaged in art auctions and private sales.

Issue

The client sold several of the world-renowned and extremely valuable Faberge Eggs to a collector overseas. The transportation of highly valuable goods carried a substantial risk of loss.

Solutions

Express Trade Capital meticulously planned and oversaw every aspect of the transportation process, including customs clearance, shipping formalities, and documentation. We also arranged for an armored caravan to protect the goods as they were transported from the client’s warehouse to an awaiting airplane, upon which armed guards watched the goods until they reached their final destination without loss or delay and with no hassle to the client and its customer.

 


Manufacturer of Men’s wear in Central America

Manufacturer of Men’s wear in Central America

Client

A New York based company that manufactures men’s clothing in Central America.

Issue

The client wanted to expand its operations and take advantage of duty free status on goods imported into the United States from Central America. The client also needed to purchase more fabrics and other raw materials for a large order it received, but neither the client’s bank nor the factor agreed to advance any more funds.

Solutions

Express Trade Capital issued letters of credit to the client’s fabric suppliers in the Far East and Europe, which allowed the client to purchase the raw materials it needed to increase production. In addition to providing purchase order financing, we oversaw the shipment of the raw materials to Central America and ultimately got the manufactured goods from Central America into the United States.

 


Transportation of Hydrazine to Launch Sites

Transportation of Hydrazine to Launch Sites

Client

A major U.S.-based chemical manufacturer.

Issue

The client needed to transport hydrazine, a highly dangerous and toxic chemical used in rocket fuels, to launch sites as quickly and cheaply as possible.

Solutions

Our legal experts crafted sophisticated legal arguments that allowed the rocket fuel to qualify for temporary import status into the launch country and thus be imported duty free because the fuel was ultimately “exported” into outer space. Express Trade Capital also oversaw the entire shipping process, ensuring that the fuel arrived safely and on time at the launch sites.

 


Clothing Manufacturer with Seasonal Cash Flow Problems

Clothing Manufacturer with Seasonal Cash Flow Problems

Client

A manufacturer and wholesaler of men’s winter clothing.

Issue

The client wanted to expand its operations to meet the seasonal increase in demand, but the client’s line of credit with a major financial institution was tapped and the client lack any additional collateral to secure financing.

Solutions

Express Trade Capital opened multiple letters of credit to finance the orders the client would have had to otherwise pass up. We negotiated with the client’s factor and ultimately entered into a tri-party agreement that allowed us to lend against the purchase order itself. This ensured that our client would be able to increase production and profits without having to rely on its traditional credit line.

 


Private Label Provider to Target Stores

Private Label Provider to Target Stores

Client

A clothing manufacturer who deals exclusively with Target Stores.

Issue

The client received a sudden increase in demand for its products and needed to place an order with its suppliers. Its troubled bank refused to advance funds until the goods were shipped, but the client’s suppliers would not manufacture or ship the goods until it received payment.

Solutions

Express Trade Capital opened letters of credit to our client’s suppliers that were secured by the customer’s purchase orders and account receivables. The letter of credit provided the necessary payment guarantee to have the client’s goods manufactured and gave the suppliers the financial security they demanded. Express then utilized its logistics capabilities to have the goods transported from Indonesia into the United States, customs cleared and distributed as per client’s instructions.

 


Premier Manufacturer of Satellites – Motorola and Space System Loral

Premier Manufacturer of Satellites – Motorola and Space System Loral

Client

A joint venture between two major American satellite manufacturers and a foreign space agency that sought to launch commercial satellites into outer space.

Issue

Due to the high value of the satellites, importation duties imposed by the government of the launch country would have killed the deal. If the deal were to go forward, Express Trade Capital had to find a way to mitigate import duties/taxes and also cost-effectively transport the satellites to their launch sites.

Solutions

Express Trade Capital assembled a highly skilled team of legal experts, scientists, and transportation experts that ultimately ensured that these highly sensitive satellites were cost-effectively shipped to their launch sites. First, we successfully argued that sending satellites into space constituted an export, thus allowing us to import the satellites into the country duty free under its temporary importation law. Then we chartered Federal Express cargo planes to transport the satellites into the country where they were already pre-cleared by customs. Finally, we arranged to have the satellites transported from the airport to the launch sites where they were successfully launched into space.

 


Special Projects – New Zealand/Korea/China/USA

Special Projects – New Zealand/Korea/China/USA

Client

A clothing manufacturer that regularly sold its products to Costco.

Issue

The client received a very large order for leather jackets but lacked the credit to have the goods produced.

Solutions

Express Trade Capital issued letters of credit that provided the secure funds our client’s suppliers demanded. Using our logistics capabilities, we oversaw the purchase of raw hides from New Zealand, which we transported to South Korea for tanning. We then had the tanned hides shipped from South Korea to China for manufacturing into leather jackets. Using our highly skilled quality control and shipping agents around the world we were able to ensure top quality at a low cost, and ultimately the timely shipment of our client’s goods into the United States for sale.