First Capital Launches Foreign Inventory Financing And Inventory Purchase Programs To Support International Supply Chain Participants

First Capital, a leading commercial financial services firm, announced recently the official launch of its Foreign Inventory Financing and Inventory Purchase programs, adding further enhancements to its International Supply Chain Finance solutions. These new offerings complete First Capital's new suite of offerings to further enhance global trade.

First Capital's Foreign Inventory Financing allows North American importers to use inventory they own and warehouse offshore as collateral for working capital loans. This supports the increasing trend of companies seeking to cut overhead costs by warehousing inventory in the low-cost countries from which they buy goods.

In addition to Foreign Inventory Financing, First Capital introduces its Inventory Purchase Program. The program solves the liquidity crunch and administrative burden suffered by overseas suppliers when they are required to participate in vendor managed inventory programs (VMI) for North American buyers.

Instead of suppliers retaining ownership of inventory for just-in-time delivery to buyers, First Capital will purchase such inventory from foreign suppliers for cash. Both importers and their suppliers benefit from purchase order fulfillment services and off-balance sheet working capital finance. This improves supply chain liquidity for both suppliers and buyers, reduces cost, and maximizes transparency and efficiency of global trade processes.

First Capital partners with third party logistics and shipping companies (3PLs) to co-manage inventory funded by First Capital via its innovative programs.

"By taking ownership or control of foreign goods, First Capital acts like a lender but thinks like a trader, tapping the seasoned international trade skills of our team," said Anthony K. Brown, International Managing Director, First Capital. "Seeing the transaction through the eyes of our clients offers them exceptional value and service."

"Our recent research on supply chain finance and working capital optimization shows an increased interest among global corporations in using third-party inventory financing and exploring potential opportunities for off-balance sheet inventory financing," remarked Viktoriya Sadlovska, lead Supply Chain Finance analyst at Aberdeen Group, author of several cross-industry supply chain finance benchmark reports. "Both buyers and suppliers have a vested interest in collaborating to better control financial, administrative and logistics costs. The ability to link trade finance and logistics processes presents great opportunities for supply chain parties."

As Mark Sunshine, President and COO of First Capital said today, "These new programs – and all of our international offerings – are designed for ‘tigers'. Tigers are buyers, sellers and 3PLs who are hungry for more business and understand the competitive advantages these inventory financing solutions provide. They are the ones that will lead the future of global trade, not simply wait until everyone else ‘gets' it."

About First Capital
First Capital is a leading commercial financial services firm providing prompt, professional and reliable working capital solutions and outsourcing, primarily for middle-market companies and institutions. With over $1 billion in total committed lines, First Capital is one of the largest independent and fastest-growing commercial finance companies in the United States. The firm focuses on asset-based lending, accounts receivable management, credit protection, international supply chain financing and servicing for clients in North America and Asia. The firm also manages asset portfolios for clients and is an active issuer of receivables-backed securities. Combining a unique blend of traditional and progressive banking methods, First Capital provides clients with customized support needed to grow and maintain their business. Based out of West Palm Beach, Florida, the firm has six full-service offices in major cities including New York, Los Angeles, Ft. Lauderdale, Oklahoma City and Atlanta and a subsidiary that is headquartered in Hong Kong.

SOURCE: First Capital