Case Studies of Clients that have been Assisted by TFP
(Name of the companies have been deleted for privacy purposes)

Case Study 1

TFP was contacted by a NSW client involved in the importation of metal guttering. The client was originally purchasing their stock in Australia and earning a 50% margin on sales. By purchasing Steel stock in Australia, the client was able to keep stocks /inventory at a low or just in time level.

The client subsequently went to China , to investigate new suppliers and was able to obtain his required inventory significantly cheaper. The difficulty he now faced was that in order to obtain the cheaper price, he had to place larger stock orders with the Chinese suppliers.

The client did not have the cash flow to finance this large purchase so he turned to TFP for assistance. Trade Finance Providers Pty Ltd was able to provide an unsecured line for $200 000 USD for the purchase of the stock on a 90 day basis. The client has since used the TFP finance, to fund two other container purchases.

Case Study 2

A Queensland based client had a 1 year old, flooring company . There were 2 partners involved in the business. Partner A owned a home and Partner B had no property assets. At the time of launching the business, Partner A (who had the property assets) was able to use the equity in his home to secure a line of credit from the bank.

After a period of time, it was decided by both partners, that personal assets should be removed as security - and the business would have to borrow funds on its own credit strength. The problem was that with only 1 year of trading history, relatively low profits and no asset backing there was no lender in Australia that could provide a solution, to enable the company to obtain a line of credit.

Trade Finance Providers arranged a line of credit of $150 000 USD for the client to use for imports of containers of flooring on a 120 day basis.

Case Study 3

A client based in Westen Australia, importing steel shelving products and who had been in business for a number of years had an existing bank loan with a major Australian bank. The bank had filed a fixed and floating charge over the business as security for the loan . The client approached his bank for an inventory finance facility, but was told that there was no further security available against his assets. The client then approached two other Inventory Finance companies in the marketplace, but both required that the bank loan been repaid first before they could provide a loan as they would need to be in first position, via a charge over the business..

The client contacted TFP that was able to secure a $500k USD line, without filing a charge over the company and without property security, for a period of 120 days.

Case Study 4

A fast growing womens shoe importer based in Melbourne was experiencing rapid growth of orders from a leading department store chain.

Each new order received from the Department store chain, required a deposit to be paid to the manufacturer in China. In order to finance this growth, the client was experiencing cash flow pressure.

The client had utilized a factoring company but that was not a practical solution, as in order for the factoring company to advance funds against the invoices, the goods had to be delivered first. The difficulty was financing the delivery of the goods to Australia in the first place.

TFP was able to arrange a line of $500k USD to assist with ordering the inventory for the growth of the order book. The client has been able to seek US customers as well without the concern of having to turn away business as a result of a limited supply of working capital.