Financing Growth
for Entrepreneurs

 

 

Two Savvy Cyclists:

The owners of a young cycling apparel firm underwent substantial growth in product orders but had limited working capital.

Gateway arranged for a domestic letter of credit for a US-based package apparel supplier. The manufacturer, in turn, assigned a portion of the letter of credit proceeds to its fabric supplier so that when the merchandise was produced and shipped, the letters of credit paid the suppliers. Gateway collected the accounts receivable, repaid the letter of credit amounts and remitted the balance to the client company.

The company has now grown into a recognized force and market leader in cycling apparel.

Private Label Pros

The principals of an East Coast private label apparel producer were faced with large orders from well-known national specialty retailers. They had years of experience with both their suppliers and their customers but they did not have an accounts receivable lender.

Gateway's personnel arranged for the bank to open letters of credit to the client's Asian suppliers. Since there was no accounts receivable lender, credit insurance was obtained based on the client company's large customers. After the accounts receivables associated with customer orders were collected, the balance was remitted to the private label company.

Fast Growth + Savvy Management

Gateway learned of a fast growing, two-year-old private label apparel firm in the young men's market when the company was faced with market demand over five times greater than the prior year. The principals were very experienced and highly respected.

The company had a third-party fulfillment house in place, an accounts receivable factoring arrangement and several million dollars in customer orders from national retailers.

Gateway provided the letters of credit, received payments from the factor based on accounts receivable and helped the company continue on its stratospheric growth curve.