When a large international manufacturer of apparel needed a credit facility to support U.S. sales, they had a difficult time securing credit. "We're a division of a large Chinese manufacturer of juniors and misses apparel with cut & sew plants in Asia and Guatemala. We formed a corporation in the U.S. to be closer to our customers and were turned down by a number of banks and large factors."
When Gateway was presented with the opportunity, we recognized that the U.S. subsidiary had no history or balance sheet and decided to dig further. We continued our due diligence and realized how big their parent company was, who their customer base consisted of and found that they had a consistent and long history of delivery with minimal dilution. We were pleased to offer this start-up business a credit facility to immediately support production costs and grow U.S. sales.
"Gateway listened to our whole story and worked quickly to provide us with a solution that will allow us to continue to support our customer's needs. We are looking forward to a long term relationship with Gateway"
International expansion is not only a sign of success, it is often a necessary part of doing business. It is extremely common for apparel manufacturing companies that sell in the United States to be headquartered and do most of their manufacturing outside the United States. While that is a common method for doing business, it does create problems when those textile manufacturers decide to set up a presence in the United States to get their products to market faster.
An international company, or any company, that does not have a domestic credit history is going to find it difficult to get funding from domestic banks. In order to get that funding, the company must first spend a few years building up a reliable credit history with business in the United States. But without the funding, getting the business started can be almost impossible. It is a catch-22 that invoice factoring funding can solve.
Apparel Invoice Factoring Does Not Need A Credit History
An apparel factoring company bases its decision to offer funding on the strength of invoiced sales. The invoice funding that a textile manufacturer factoring company offers is directly tied to the invoices that a company generates. Whether your company has been doing business in the United States for one week or 10 years, an apparel factoring company can use your invoiced sales to generate the cash flow you need to be successful.
Setting up a factoring account only takes a few days and the approved account can provide a steady and reliable cash flow, as long as your company has invoiced sales from creditworthy clients. Since your international manufacturing firm already has clients in the United States, which is the reason why you are establishing a presence in America in the first place, you have everything you need to get your United States office off the ground and running.
A Professional Invoice Funding Company Will Work With Your Organization
When American banks do not see a history of strong business in the United States, then they will not be able to offer the kind of funding assistance you need. But a textile manufacturer factoring company will sit down with you and examine your organization's operations and work with you to come up with a plan to get your American operations off the ground.
A professional factoring company can help put together an invoice funding vehicle that will process your invoiced sales and turned approved invoices from creditworthy clients into readily-available cash. Instead of scrambling to secure the invoice funding you need to get started, you can use the strength of your own invoiced sales to establish your successful United States headquarters and be closer to your American clients.
Expanding an international business to the United States can be difficult if you try to go through traditional funding avenues. But when you talk to an apparel factoring company, then you will be able to put together a cash flow plan that will get your United States operations up and running.