Financing Growth
for Entrepreneurs

 

 

Well-Connected Start-Up:

A US-based distributor of European snowboards and bindings approached Gateway to finance its import activities.

Because the client had an excellent supplier relationship, a reliable production source and wide product distribution in Europe, Gateway opened the necessary letters of credit to three European countries and arranged for shipment to the final customers.

Gateway collected the client’s accounts, repaid the amounts due under the letters of credit, and remitted the balance to the client.

Surf Buddies

Gateway was introduced to a Southern California company founded by two surfing buddies. They had been in business for three years and had developed some profitability and name recognition when orders for new product outstripped the firm's ability to finance offshore sourcing.

Gateway opened letters of credit to Asian suppliers and merchandise was shipped to both US retailers and foreign distributors. Gateway was repaid by wire transfers and letters of credit from foreign distributors and from factor advances against US sales.

Surf Start-Up

The senior manager of a start-up surfwear company approached Gateway. Though the company had only one year of operations behind it had assembled a comprehensive management team with over 50 years of combined surftwear experience. The company had experienced sales and sourcing personnel on staff and good relationships with sourcing agents in Asia.

The firm had raised equity financing but it was fully utilized in funding operations. Gateway was able to provide letters of credit to foreign suppliers based on US and international customer orders. Gateway was repaid through a combination of letters of credit collection assignments for export shipments, as well as factor advances based upon US shipments and accounts receivable.