Minority-Owned Supplier Master Factoring Facility, Purchase Order Financing & Letter of Credit Case Study

14:41 08 June in Blog, Case Studies

This Client is a globally diversified supply-chain solutions company with offices in New York and Shanghai, China.  They provide all supply chain services from procurement, warehousing, distribution, fulfillment and transportation and has a broad portfolio of service offerings.

Background

  • The management team has experience with servicing the world’s leading consumer product manufacturers. 
  • The Client is able to assist small businesses to large corporations with their supply chain needs.  
  • As a certified minority contractor, they have dedicated contracts from New York City agencies for materials required to conduct the City’s business and maintain and improve its assets.

Company Challenges

  • The Client received contracts totaling $2MM from the New York City Housing Authority (NYCHA) to supply generators.   
  • Two of the generators are manufactured in China.  The terms of the sale were 30% down payment of the COGS and 70% of the COGS upon shipment of the goods to the USA.

Capstone’s Solution

  • Provided a $2MM Master Factoring Facility. 
  • Opened a $1MM PO Financing Facility and issued two Letters of Credit to Chinese manufacturers for each generator.

Progress and Future Outlook

  • Based on the Client’s ability to issue letters of credit and arrange for the delivery of the generators, NYCHA has given additional orders.
  • The new orders are for materials required for construction and maintenance of the apartment buildings and related infrastructure owned by the City of New York.

 



Download: Infrastructure Investment & Jobs Act – Contract Opportunities and Funding Analysis

Capstone wants your business to take full advantage of the opportunities (or use projects) available through the Infrastructure Investment & Jobs Act recently signed into law.

Download

    Logo

    Submit your information to be directed to the download page.

    Privacy & Terms