Domestic Light Assembly – Case Study 1
All the time and effort spent on hardware development, software integration and testing was starting to pay off.
When the purchase orders from two large buyers started coming with increasing frequency, and for larger quantities, it was time to find flexible financing that could support their growth.
Their factor knew they were a good fit for Purchase Order Financing and placed a call to Global Trading Partners.
The transactions required the manufacture of printed circuit boards and chassis in China along with domestic sourcing of hard drives, memory chips and the operating system. Global stepped in and paid the vendors so the PC manufacturer could bring in the components, assemble into finished computers, load the software and complete the burn-in.
Typically several transactions were active at once, all in various stages of completion, with total funding of over $1,000,000.
Global was repaid by the factor once the product shipped. The communication and funding between the factor, client and Global enabled the client to significantly ramp-up production and realize a dramatic increase in margin.