When a local Lamps Wholesaler came to PMF Bancorp in Los Angeles, they needed to find a reliable and an affordable supplier as well as financing for the eventual increase in sales volume. As a note, Lamps Wholesaler is not the actual name of the American company, but a pseudonym used by PMF Bancorp to protect their privacy. The problem for the Lamps Wholesaler was they had no international connections and no way to check out the quality of international suppliers. In addition, the specs of their projects needed the right supplies as well as precise assembly. Luckily, given PMF Bancorp’s partnership with ChinaMart® Los Angeles and its own offices China, PMF Bancorp was connect its Lamp Wholesaler with multiple Chinese manufactures to approve the financing for the transaction.
Right away, PMF Bancorp sourced the job of finding the right supplier to PMF’s partner the ChinaMart® in GuangZhou and Shenzen. Since it is important to have more than one supplier available if your business is going to expand to the next level, the agents looked not only for one supplier, but multiple possibilities. PMF Bancorp believes it is essential in a major wholesale business to have multiple supply sources in order to protect the supply chain in order meet production quotas regardless of the situation.
Given PMF Bancorp’s extensive history with Chinese manufacturers and suppliers, the Lamps Wholesaler found the process of connecting to the right Chinese suppliers both efficient and effective. In the meantime, PMF Bancorp worked out a Trade Financing agreement with the Lamps Wholesaler while also providing them with Letters of Credit. By having the funds to begin production and future guarantees of credit lines with PMF’s letter of credits, the Chinese deal happened quickly. More importantly, the Trade Financing and Letters of Credit allowed the Lamps Wholesaler to negotiate better terms and more affordable rates with the Chinese suppliers.
By factoring the trade and productions costs, the Lamps Wholesaler was able to expand their business and meet growing production quotas. The financing directly allowed the wholesale business to grow and take on larger contracts with stores and chains. By knowing the financing was in place not just for the initial deal, but also for future production and trade based on the letters of credit, the Lamps Wholesaler could expand their production quotas with confidence. The owners of the lamps wholesaler gratefully expressed how working with PMF Bancorp allowed them to take their business to the next level of productivity and profitability.