Capital Business Credit LLC (CBC), a commercial finance company specializing in providing supply chain financing and customer credit risk management solutions, has formed a new division, CBC Trade Finance, headquartered in New York with offices in Hong Kong and Shanghai, China. CBC Trade Finance is independent and is not affiliated with any U.S. commercial bank.
CBC Trade Finance will provide trade finance solutions to enhance and expand the trading relationship between U.S.-based importers and Asia-based exporters. According to The United States Trade Representative, the U.S. imported nearly $300 billion worth of goods from China in 2009 alone. Through CBC Trade Finance’s Supplier Early Payment (SEP) Program, the company will provide up to 120 days of open account terms to U.S.-based importers, while paying Asia-based manufacturers 100% of their receivables, without recourse, upon shipment of goods.
In the U.S., CBC’s CEO Andrew Tananbaum will lead the division and Patrick Ho, CBC’s executive vice president and regional manager, Asia, will oversee CBC Trade Finance in Asia. All of CBC’s offices will offer the SEP Program.
Over the past 15 to 20 years, as China has become the U.S.’s largest trading partner, there have been significant systemic changes in the apparel, furniture and soft good manufacturing landscape. Where once there were thousands of manufacturers and hundreds of importers, today, consolidation has shrunk the market dramatically and created credit risk issues for both buyers and suppliers.
“Our SEP Program will enable manufacturers in Asia to mitigate risk by receiving 100% payment upon shipment; and we will provide importers with the ability to secure open account terms for up to 120 days,” explains Tananbaum.
CBC provides companies with access to credit and working capital asset management solutions that include: factoring, customer credit protection, accounts receivable financing and asset based lending, to help them manage supply chain-related finance issues.