Financing Growth
for Entrepreneurs

 

 

Industrial Plant:

A client with a contract to supply a pharmaceutical plant to an African country approached Gateway. With a letter of credit that allowed for multiple shipments, an extended time frame and a guarantee of payment by a major US bank, the client looked to Gateway for the procurement of a qualified freight forwarder to help expedite deliveries and for additional letters of credit that allowed for the purchase of the equipment needed to construct the entire plant.

Gateway coordinated closely with the client and the freight forwarder to ensure proper shipment and compliance with the conditions of the purchaser’s letter of credit.

After 15 shipments were success- fully completed, the plant was installed.

Hemp Importer

Gateway was approached by an importer of casual outdoor apparel manufactured using hemp-based fabric. The company, while small, was growing and had a rela- tionship with a third-party fulfillment warehouse, as well as a regional accounts receivable factor.

Gateway checked the order file, opened the necessary letters of credit and arranged for merchandise to move from Asia, through US customs, to the third- party warehouse and finally to the customers. Gateway was repaid by factor advances and another young company was able to fund its own growth.

Fast Growth in Outdoor

A rapidly growing producer of casual outdoor apparel was faced with order increases of nearly 100% annually. However, it's equity position was very weak and its retained earnings marginal. The principals were very experienced in both Asian sourcing and in design and marketing. The company had an accounts receivable lender in place, proven supply sources and an ever increasing customer base of respected outdoor retailers.

Gateway opened letters of credit to the company's Asian suppliers and merchan- dise that landed in the US was immediately shipped to specialty retailers. Gateway was repaid by advances from the client company's accounts receivable lender.

Using Gateway's resources as part of its financing structure, the company to grew over 300% within four years and became a leader in its market segment.

Experienced Apparel Manager

Gateway was approached by a company that imported handmade sweaters from China. The company had a weak equity base and very little historical profitability; however, the principal was experienced in the apparel business and had a reliable Chinese supplier. The company also had a solid book of orders with customers, both large and small, with whom it had dealt with for some time.

The client firm also had a fulfillment warehouse in place, as well as an arrangement with a regional factoring firm.

Gateway arranged for letters of credit to the Asian sweater source and allowed product to be shipped from the fulfillment house to create accounts receivable. Gateway was repaid by advances from the factor against the client's accounts receivable.

Retro Baseball Caps & Apparel

Gateway was approached by a rapidly growing domestic supplier of nostalgic baseball caps and jerseys. While small, the company had already established a relationship with a third-party warehouse and an accounts receivable factor. They sold to several major accounts and had been able to handle their current level of business idependently.