NEW YORK CITY — November 17, 2010 — Capital Business Credit LLC (CBC), a commercial finance
company specializing in providing supply chain financing and customer credit risk management
solutions, announced the formation of a new division, CBC Trade Finance, headquartered in New York
with offices in Hong Kong and Shanghai, China.
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 percent of their receivables, without recourse, upon shipment of goods. CBC Trade Finance is
independent and is not affiliated with any U.S. commercial bank.
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.
“CBC Trade Finance allows for a more efficient and profitable exchange of goods. Our SEP
Program will enable manufacturers in Asia to mitigate risk by receiving 100 percent payment upon
shipment; and we will provide importers with the ability to secure open account terms for up to 120
days. In short, suppliers will get paid faster and importers will be able to pay for their goods
later in the process,” said Andrew Tananbaum.
Patrick Ho stated, “In some cases, importers will receive their goods and provide them to
their retail customers even before payment is due to the manufacturer – which is truly unique in
the industry – allowing shelves to be stocked in an expedited fashion, enabling consumers to buy
goods quicker. Effectively we are providing the capital lubrication to the international trade
finance process.”
For more than 20 years, CBC has provided 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. The
Company has a long and successful track record of working with hundreds of importers from start-ups
to established, public companies, across a wide range of industries, helping them grow by providing
quick and reliable access to working capital as well as hands-on assistance in managing customer
credit risk.
Tananbaum concluded, “CBC has decades of international trade experience and recognizes the
paradigm shift that has taken place over the last decade as importers and exporters moved away from
using letters of credit to using open accounts. As such, we created our SEP Program. Because of the
complexities involved with open account trading, a need exists in the marketplace for an offering
that helps the exporter/manufacturer mitigate risk, provides efficient transaction processing and
protects the receivables and inventories they finance. By creating CBC Trade Finance, U.S.
importers and Asia manufacturers/exporters now have the ability to access financial credit
facilities for the entire post shipment supply chain.”
Posted on November 23, 2010
Source: Capital Business Credit LLC
