For a seasonal apparel firm, timing is everything. Orders must be placed months ahead of delivery, and cash must flow well before the first garments reach the shelves. So when their bank abruptly withdrew a trade finance line — just weeks before the business needed to confirm its seasonal production — the timing could not have been worse.
The reason was blunt: this year’s order book was lighter than the previous one, and the bank saw risk in lower projected profits. Despite the company’s lean overheads and a history of consistent trading, support was cut. In an industry where the main costs are goods, freight, and import duties, losing that line meant the difference between filling shelves and missing a season.
The bank, unwilling to fund but unwilling to see its client collapse, pointed them towards Lock Finance. We looked at the numbers differently.
The company’s track record was steady and their customers were established names. The business generated reliable profits, though most were taken out each year, leaving low equity on the balance sheet.
The problem wasn’t a failing business. It was a mismatch between rigid bank criteria and the realities of seasonal trade.
Within five business days, Lock Finance had approved a 120-day Import Facility secured against confirmed client orders. That gave the firm the certainty to place production with their overseas supplier on time. More than that, we extended support with a 60-day Invoice Finance facility. This transformed the cash cycle: not only could they fund imports, but they could also offer longer terms to their best customers without straining liquidity.
The result was more than survival. By combining import and invoice finance, the company came out stronger: able to trade confidently, protect profitability, and build goodwill with their customer base. What began as a crisis of confidence ended with a business more resilient than before.
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