Success Study – A High End Shirt And Garment Manufacturer.

Need: Purchase Textiles in China – Dropships into Honduras and Guatemala for Manufacturing- Dropships finished Garments into U.S.

Client: A California based company that manufactures shirts in Central America and sources fabric from China.

Challenge: The client takes advantage of the CAFTA free trade agreement with Central America. Part of the fabrics used in his shirts and knits originate in China. Given the large orders and increase in volume our client is experiencing client needed the increase support in closing their trade cycle. Client needs to:

  • Pay his Chinese suppliers Cash at shipment
  • Wait transit times into Central America
  • Manufacture the garments
  • Ship finished garments into the U.S
  • Clear Customs
  • Client then sell with extended terms to his clients.
  • Clients trade cycle exceeds 110 days.

Neither of the clients Banks and Expensive Factors was willing or able to help the client and advance funds.

The SWTSdirect Solution: SWTS quickly approved the client with a 1 year long revolving purchasing Facility.

  • SWTS paid 100% of the value of the goods at time of shipment to the Chinese supplier.
  • SWTS immediately invoiced the client with 120 days to repay for the goods.
  • Further our Client generated a Cash Discount from the Chinese supplier further reducing the cost of the SWTS facility.
  • Goods were sent to Central America for production
  • After production goods were sent from Central America and imported by our client in the U.S.
  • Client then sold the merchandise with terms to his client.

Client did not interfere with his current banking and factor relationships as SWTS does not finance the goods, and does not take a UCC lien on any assets; SWTS takes no Collateral.

©2008 Southwest Trade Services, LLC. All rights reserved.