TriChain provides solutions to maximize your working capital allocated to in-transit inventory while strengthening your supply chain...
while strengthening your supply chain at the
same time. Exporters are putting more pressure
on Importers for payment of goods at point of
departure. This creates the requirement for the
Importer to find financing solutions for inventory
on the water.
ABL lenders and Factors will traditionally not advance on goods while they are on the water. If done, it usually requires collateral to back the advance. This does not solve the financing gap which creates strain on working capital for the Importer.
What options exist today?
• Equity cost 20%-30% plus equity dilution
• Home Equity line cost 6%-10% plus your home
• Mezzanine Finance cost 18%-25% plus equity dilution
• Purchase Order Finance cost 25%-40%
The TriChain solution allows you to leverage your inventory on the water to fill your working capital financing gap. This allowing you to monetize your existing working capital while avoiding the expense and hassle of raising additional equity, or putting other personal assets at risk.
In-transit Inventory:
problem or Untapped Solution?
The Problem:
Day1:
Exporting Country
Port of Departure
Ocean
Day45:
Exporting Country
45 Day Cash Gap:
NO FINANCING
The Tri-Chain Solution:
Day1:
Exporting Country
Port of Departure
Ocean
Day42:
Exporting Country
Day45:
Exporting Country
In-transit inventory