2/20/2022
Early in 2021, a major Private Equity firm located in the Midwest purchased a leading supplier of RV and marine parts and accessories, which is also located in the upper Midwest. The company maintains relationships with a vast network of dealers throughout the region and has developed a strong presence in numerous e-commerce platforms.
Like most industries, both the RV and Marine sectors were negatively impacted at the outset of the global pandemic in early 2020 due to factory closures and shutdowns. However, by the second half of 2020, RV demand soared. With people tired of being locked down in their homes, and the ability to safely travel and stay within their own individual spaces, the RV industry expanded dramatically.
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 $3,500,000 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.