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King Trade Capital Provides Complete Import Production Finance Solution for Japanese Whisky Brand

September 02, 2020, 08:30 AM
Filed Under: Beverages

King Trade Capital is pleased to announce the financing of a new Japanese Whisky brand being rolled out to major liquor store chains across the US.

King Trade was contacted by a creative banker that was familiar with King Trade Capital from past direct inter-creditor experience. He had been approached by a growing beverage business to help finance the roll out of their new Japanese whisky brand. The banker immediately put the company in touch with King Trade Capital as the risk was more in line with KTC’s PO finance discipline.

King Trade listened to the story and learned of the owner’s experience in the liquor industry and decided to take on the production risk to get the well-known Japanese distilleries to bottle the whisky while KTC’s client collected and finalized their $5.6 million in initial orders.

KTC provided cash payments to get the liquid bottled at the distilleries and then is paying the balance upon completion and shipping from Japan. KTC provided their client a $3.7 million finance solution to start their new brand.

Due to KTC’s quick commitment and funding the company can execute and collect orders that are far in excess of the inventory from the first production run. The company has already decided to double their purchase for the next production run utilizing King Trade, based on the unmet demand from the first deliveries.

King Trade is working in conjunction with a factor that is advancing on the receivables once the goods are delivered to the end customers.

Andrew Chong at King Trade Capital said “This is an excellent example of the value add that King Trade Capital brings as a PO finance partner when a business is trying to scale sales. Our client has launched a new brand and hasn’t had to sell equity to do so.”

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