Clothing company



  • Funding amount requested from the company: $5.2 million 
  • Item: clothing 
  • Finance solution: letter of credit and receivables line

Rather than waiting 90 days until payment was made, the company wanted to pay suppliers on the day that the title to goods transferred to them, meaning it could expand its range of suppliers and receive supplier discounts.

TFG structured a letter of credit facility (with a corresponding receivables line) of $5.2 million to be issued in favour of suppliers. This solution allowed payments to be made earlier to an increased number of suppliers, and enabled the company to benefit from increased purchasing power.

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About the Author

Sheena is responsible for the TFG Weekly Trade Briefings at Trade Finance Global (TFG).

She loves the digitalisation of trade and is fascinated about its impact on day to day transactions.

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