Safeguarding PPE Supply Chains: Express Trade’s $5MM LC Facility Shields Client Amidst COVID Challenges

In a strategic move to combat PPE delivery uncertainties during the COVID era, Express Trade Capital extended a vital lifeline to a client with a $5MM letter of credit (LC) facility. The client, a stalwart in the apparel industry, had been leveraging ETC’s factoring and PO funding facilities for several years. However, with the onset of the pandemic, they pivoted to PPE production, requiring immediate order fulfillment and stock replenishment.

Facing the challenge of overseas deposits and the need for quality verification before committing significant funds, the client turned to Express Trade, relying on their established relationship. Leveraging pre-existing due diligence and a shared history, ETC seamlessly provided an add-on facility, addressing the client’s immediate needs.

Express Trade’s trade finance division executed a documentary letter of credit through its banking channels. This empowered the client’s manufacturer to produce and ship PPE without upfront deposits. The LC ensured guaranteed payment, only disbursed upon the timely delivery and fulfillment of all specified terms outlined in the letter of credit.

For clients navigating financial constraints amid abundant opportunities, Express Trade Capital takes proactive measures to curtail potential financial risks. With a tailored approach to each deal, this endeavor exemplifies ETC’s commitment to creating public good through private service.