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King Trade Capital Provides $3MM Trade Finance Facility for Florida Toy Importer

November 07, 2018, 07:08 AM
Filed Under: Importer

King Trade Capital announced it has established a trade finance facility for a Florida based company that develops, manufactures and sells action figures to various large U.S. retailers.   

KTC was introduced to the 9 year old company through a referral from a long term relationship King Trade has with one of the nation’s largest factoring companies.  King Trade was brought in as a trusted provider of PO finance to help supply a growth capital alternative to help the client grow their sales well beyond their current cash flow availability.

The toy developer has seen sales grow to the point that they needed additional capital to support additional vendor credit terms, so that they can fulfill their growing orders. King Trade was able to support their increased capital needs in conjunction with their existing factor, which allows the company to quickly grow sales by KTC financing up to 100% of the inventory cost of goods to fill customer orders.

The Company needed a finance solution to secure payment to their suppliers in the U.S. and China since their inventory needs exceed the open credit terms provided by the vendors.  King Trade Capital was able to react quickly, structuring and closing a trade finance facility that met their growth capital needs, allowing them to purchase more inventory than their balance sheet allows and offering the factor the opportunity to provide even more factoring on the increasing receivables.  

The finance solution KTC provided includes Documentary Letters of Credit to the Chinese vendors and cash payments to the US suppliers so they are comfortable producing and shipping much larger quantities of inventory for the growing orders.  

King Trade Capital’s trade finance solution provides the incremental financing needed to keep the Company’s vendors producing and shipping to fulfill the ever growing end customer purchase orders, and allows the company to benefit from profitable sales they could not otherwise support.

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