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
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
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.
Return of Faberge Eggs to Russia
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 customer in Russia. The transportation of highly valuable goods into Russia carried a substantial risk of loss because of the country’s volatile post-Cold War environment.
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
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 Russian 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 in Russia as quickly and cheaply as possible.
Solutions
As in the case of the joint venture that imported satellites into Russia, our legal experts crafted sophisticated legal arguments that allowed the rocket fuel to qualify for temporary import status 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
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
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
Client
A joint venture between two major American satellite manufacturers and the Russian 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 Russian government 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 in Russia. 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 Moscow where they were already pre-cleared by customs. Finally, we arranged to have the satellites transported from Moscow to the launch sites where they were successfully launched into space.
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.