Percent’s Paola Rios recently hosted a webinar with leaders from TradeBacked to unveil the inaugural launch of the TB Fund 1 on Percent. The presentation delved into the intricacies of this LP Fund and TradeBacked’s unique approach to inventory financing and how it differentiates in the marketplace in a fireside chat and audience Q&A
See the deal page for TBF Fund Membership Interests 2023-1, which is open for investment on Percent until November 29th.
Note: During the live Q&A portion of our event, a question regarding the tax documents investors would receive was answered incorrectly. Please note this offering will provide K-1’s to any investor who participates.
TradeBacked is a specialty finance company providing inventory financing through inventory buyback and sale leaseback contracts internationally, in regions that include Asia, Europe, the United States, and the MENA region. The Underwriter is not a lender, nor do they provide loans. Rather, together with its affiliates, Tradebacked acquires inventories and either leases this inventory back to clients for a monthly rent or sells an option to repurchase this inventory to the client.
In the case of a typical sale-leaseback transaction for example, TradeBacked usually purchases luxury assets with readily discoverable price at a discount to fair market value, leases them back to the client and gives this client an option to repurchase the property back from TradeBacked on terms agreed by the parties provided the client is current on monthly lease rental payments and any other obligations owing under the applicable contract. The Underwriter has approximately 7 employees as of June 2023. At past firms, the CEO of the Underwriter gained experience providing working capital through factoring lines to companies active in the oil & gas, wholesaling, distribution, manufacturing, textiles, foods, plastics, and chemical industries.
About the TB Fund
The Fund’s investment objective is to provide attractive returns to investors generated from trade finance agreements with global merchant companies with a focus on inventory-backed financing. This often involves purchasing the underlying inventory in inventory buyback agreements and sale and leaseback agreements. TradeBacked seeks to identify cashflow positive small and medium-sized businesses, preferably with $50M or more in annual revenue, three (3) years’ minimum operating history.