2014

Capital Business Credit Launches Chinese New Year Financing Program Significant Financial Facilities Available for Chinese-based Exporters and U.S.-based Importers to Ensure Spring Goods are Delivered On Time

NEW YORK, Oct. 6, 2011 /PRNewswire/ -- As the traditional manufacturing slow down associated with the Chinese New Year approaches, Capital Business Credit (CBC) (www.capitalbusinesscredit.com) has launched a program to provide financial facilities to both Chinese-based suppliers and U.S.-based importers to ensure that orders placed in Q4 2011 will receive financing in order for the goods to be shipped to the United States and paid for prior to the Chinese New Year.

Many factories in China close for up to four weeks surrounding the New Year, which will occur on January 23, 2012.  To minimize the cash flow impact of this annual shut-down, many suppliers (manufacturers and exporters) rush to manufacture Spring orders to ensure that goods can be made, shipped and paid for prior to Chinese New Year. This rush often strains their cash flow and line of credit requirements, potentially disrupting the supply chain for clothing and other soft goods.

"CBC understands the financing needs on both sides of the Pacific," said Andrew Tananbaum, executive chairman of CBC.  "Chinese-based manufacturers need to be paid as soon as possible to finance the manufacturing process, while U.S. importers are often stretched thin financially because they need to pay for the goods up to three months prior to receiving payment from retailers.  This is where CBC comes in to help minimize the strain on companies.  We provide the financial support to keep products flowing from China to America's store shelves all year round, including during the Chinese New year."  

With more than 30 years of experience financing various points along the consumer supply chain, the CBC Chinese New Year Program provides lines of credit up to $20 million through trade finance, asset-based and factoring facilities. These programs are available to overseas suppliers and U.S.-based importers all year, however, given the particular financing pressures surrounding the Chinese New Year, CBC has increased funds available under its trade finance program.

In late 2010, the Company launched its trade finance division, CBC Trade Finance, to work specifically with suppliers outside of the U.S. to relieve the financial pressure that exists, as U.S.-based importers rely more on extended open account terms of sale.  Through CBC Trade Finance's Supplier Early Payment Program, suppliers receive 100 percent payment for goods at the time of shipment, while U.S.-based importers have up to 120 days to pay the purchase order.

Tananbaum concluded, "CBC understands the cash flow impact of the Chinese New Year on suppliers and importers and has developed this program to ensure that retail stores are stocked in time for Spring.  Chinese New Year, coupled with lending restrictions on small to medium sized enterprises by U.S. and Chinese banks, has created a significant need in the marketplace for lenders like CBC who are willing and able to lend to SMEs along the retail supply chain."

About Capital Business Credit

Established in 1988, Capital Business Credit LLC (www.capitalbusinesscredit.com) is a global integrated financial products and services company.  The Company's service offerings include: full-service factoring; accounts receivable management services; inventory lending; asset-based lending; and international financing.  CBC Trade Finance, a division of CBC, provides trade finance solutions for U.S.-based importers working with Asia-based suppliers (exporters). Capital Business Credit is based in New York, with offices in Hong Kong; Shanghai, Los Angeles; Charlotte, NC; and Ft. Lauderdale, Fla.

Contact:
Danielle DeVoren
KCSA Strategic Communication
212-896-1272 / ddevoren@kcsa.com

SOURCE Capital Business Credit



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