Financing Growth
for Entrepreneurs

 

 

International Shoe Expert:

Gateway was approached by an accomplished footwear executive who had obtained a license to produce footwear internationally from a highly successful European casual apparel brand.

An impressive management team, an established variety of international distributors and an accounts receivable factoring arrangement with a nationally known lender, all proved to be reason enough for Gateway to provide the letters of credit needed to land shoes in North American specialty retailers.

The client company was thus able to substantially increase US sales without obtaining additional equity financing.

Sporting Goods Pro

Gateway was approached by a specialty importer of mountain bikes from Taiwan. The company's principal had worked for a large importer of mountain bikes and had orders from recognized specialty retailers as well as big-box retailers.

The client had a commercial banking relationship, which provided Gateway with payment whenever bikes were shipped and accounts receivable was created.

Gateway opened letters of credit to the client's Taiwanese supplier, the bikes were shipped from the clients already established third-party warehouse, funds were advanced by the commercial bank, and Gateway was repaid.

Two Savvy Cyclists

Gateway was approached by the owners of a relatively young cycling apparel firm. The company had undergone substantial growth in orders for its unique products, but it had very limited working capital. The principals were experienced and the company's product was well-accepted.

Gateway arranged for a domestic letter of credit to be issued to a US-based pack- age apparel supplier. The manufacturer, in turn, assigned a portion of the letter of credit proceeds to its fabric supplier.

The required merchandise was produced, shipped to customers, and the letter 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.

A Camping We Will Go

A well-known supplier of camping products contacted Gateway Trade Finance to provide letters of credit to its suppliers in China and Korea. The client's asset-based lender had previously provided letters of credit as an accommodation, but grew uncomfortable with its position as the letter of credit volume grew.

Gateway was able to provide a letter of credit facility and work in conjunction with the asset-based lender. The client relied on Gateway's letter of credit experience to streamline its import process and reduce costs. As camping equipment was shipped to the client's warehouse for final packaging and inspection, Gateway entered into an inventory storage agreement with the client, calling for regular inventory audits and bonding of the client's staff.

With Gateway funding in place, the client was able to increase sales and satisfy suppliers' requirements for letters of credit.

Go Big Start-Up

Gateway was approached by a professional skater with substantial retail experience.  The client wanted to import specialized skates for the "aggressive" or "vert" market segment.

The company located a high quality European supplier and developed solid orders from premier skate shops.  Once Gateway arranged for a fulfillment warehouse, opened letters of credit to the European supplier and arranged for direct collection of accounts receivable, the new venture was underway.