Late in 2020, a major Private Equity firm located in the Midwest purchased a manufacturer and distributor of an innovative line of outdoor sports equipment, which is also located in the Midwest. The company maintains relationships with a vast network of large retailers throughout the USA and has developed a strong presence on their e-commerce platform.
Their innovative product like is designed for children and the novice participant and Sales has grown exponentially. Like most industries sourcing product from Asia, the company was negatively impacted at the outset of the global pandemic in early 2020.
The combination of the Supply Chain Disruption and Sales growth outpaced the company’s ability to support the expansion in working capital through internally generated cash and their bank line of credit. Tradecycle’s unique model for processing payments enabled the company to extend their Accounts Payable payment terms without stressing their vendor relationships. Tradecycle is now providing a $1,000,000 Accounts Payable Processing Program with extended terms, which draws more working capital into the company’s operating cycle to support the growth in Sales. Tradecycle’s payment terms enabled the company to procure inventory at a faster rate and assure adequate stock for to continue increasing Sales.