Incomlend Finances US-Based Apparel Trading Company


With Incomlend Invoice Financing Solution, a US-based apparel trading company ensured the continuity of its supply chain and weathered COVID-19’s disruptions. This enabled the company to swiftly capture new business opportunities as retailers renewed their appetite for its goods.

Incomlend also helped its Hong Kong-based supplier to insulate itself from credit risks and maintain working capital for its sale cycle, allowing the apparel sourcing company to position itself for growth.

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The importer is an apparel trading company that sources its goods from Asia and sells it to US retailers, such as Walmart, Target, and Kohl’s.

The exporter is a Hong Kong-based apparel sourcing company with operations in Bangladesh. It has been working with the importer for more than two years.

During COVID-19, the importer experienced several cancelled orders, which impacted its working capital. Additionally, its customers’ payment terms (up to 90 days) are longer than the exporter’s credit terms, which is 30 days after receiving goods.

Without any financial solutions, the importer would have faced cash flow constraints or overdue payments to the exporter and other suppliers.

With Incomlend Invoice Financing Solution, the exporter received the payment after it shipped the goods, and Incomlend verified the invoice.

The importer could pay the value of the exporter’s invoices up to 120 days later.

Incomlend also assessed the trade by both parties and vetted the invoices against third-party trade documentations to mitigate operational risks.

Incomlend Invoice Financing Solution enabled the importer to maintain the continuity and financial health of its supply chain during the pandemic. This allowed the company to weather the pandemic and quickly capture new opportunities as its customers reinstated cancelled orders and placed new ones.

Incomlend also enabled the exporter to receive timely payments and minimise credit risks during COVID-19. With working capital, the exporter can continue to finance its operations and place itself in a better growth position when the economy recovers.