Global Goes Digital
PRODUCT: Printed Circuit Boards
PURCHASE ORDER: Multiple orders over $1 million
Domestic Light Assembly
A Los Angeles based manufacturer and hardware developer of specialty computers was spending a lot of time in R&D to design more advanced commercial applications and software integration. While they were accustomed to seeing large orders for their technology, they were not prepared for the massive orders on the horizon.
Trying to stay ahead of the orders with production, our client tried to obtain lending from several major banking institutions but was met unfavorably. They knew they needed to find more flexible financing to support their growth.
Knowing they would be a good fit for Trade and Purchase Order Financing, their factor introduced them to Global. And the timing couldn’t have been better. They began receiving huge orders, all at the same time and for various stages of completion. The transactions required the manufacture of printed circuit boards in China along with domestic sourcing of hard drives, memory chips and the operating system. Total funding for these orders was just over $1 million.
After reviewing the issued purchase orders, Global approved their funding needs almost immediately 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. Global was repaid by the factor once the product was shipped and received by the buyer. 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 due to economies of scale.
Global Meets the Candy Man
PURCHASE ORDER: One Million Four Thousand Units
Such sweet delight to see what many companies only dream about, that big order from one of the biggest retailers, Wal-Mart! This U.S. based candy manufacturer hit the home with purchase orders from Wal-Mart for 1 million plus units of candy.
Our client knew these orders were going to require a significant increase in labor and would increase their production to include 3 shifts a day, 5 days a week for two months. Projections for product fulfilment showed working capital needs of $700,000 for the significant labor costs and raw materials. Knowing they needed financial help to complete this order, the candy manufacturer was introduced to Global. After an analysis of the purchase order and an evaluation of the manufacturing needs, Global Trading was able to extend funding very quickly, which put production in full motion.
With tight delivery windows and complete logistics handled by Global, the end result was all our new client could have hoped for. Everything shipped on time, sell-thru was north of 90%. The following season the client received a reorder for 20% more than the initial order!