Financing Growth
for Entrepreneurs

 

 

Ready-to-Wear Veteran:

A well-respected and longtime veteran of the ready-to-wear business approached Gateway after the company had experienced a recent operating loss. Short the working capital necessary to support its current operations and letters of credit for its European supplier, the company looked to Gateway to provide third-party warehousing, letters of credit, and customer order fulfillment facilitation.

With Gateway’s help, the company was able to meet its market demand and was eventually sold to the benefit of the owner.

Toy Designer

Gateway was approached by a start-up supplier of plush toys. The principals had good relationships with Asian producers, a third-party warehouse and solid orders from nationally known retailers.

Gateway opened the letters of credit to Asia after verifying the customer orders. Accounts receivable payments were directed to Gateway and the company was on its way.

Mass Market Opportunity

A new firm received an immense order from a West Coast-based mass market discount store. While the company was new, it had solid orders and great supplier and banking relationships. The bank, however, was unable to provide the support required to finance the procurement of inventory.

Gateway opened the letters of credit for the firm allowing the product to reach the mass market retailer. Payments were directed to the client's bank, which in turn, wired funds to Gateway.

Housewares

An experienced manager of a sales organization selling to big-box retailers started his own business to take advantage of the desire by these retailers to buy direct. After two years of slow but steady growth, his business faced some major chal- lenges. Fortunately our client's business made a major recovery and Gateway was contacted by its factor to provide purchase order funding as sales began to far exceed the working capital in his business.

Gateway found the principal experienced and knowledgeable, with a strong busi- ness plan. With a factor in place, Gateway provided a letter of credit facility to start product production in the Orient. And at no additional costs to the client, Gateway increased the facility within three months to help cover anticipated needs.

Using the Gateway facility and factoring, sales increased tremendously in the first year without dilution of ownership. In addition, Gateway assisted our client in locating competitive third-party fulfillment warehousing and customs house brokerage at the port of entry familiar with his product categories.