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King Trade Capital Provides $5MM PO Finance Commitment for Importer

July 12, 2013, 07:31 AM
Filed Under: Purchase Order Finance

King Trade Capital (KTC)  announced the recent funding of a $5.0 million purchase order finance commitment for an Illinois based importer and distributor of novelty, craft, and toy products. The investment banking arm of a New York-based specialty finance company introduced King Trade Capital  to their client who was seeking to implement a turnaround and needed a funding solution to purchase the inventory needed to fulfill large sales orders from major retailers.

The solution that was structured for the importer included refinancing their bank line with a factoring facility.  Since they no longer had sufficient open terms or liquidity to secure payment to their overseas manufacturers King Trade Capital quickly established a finance solution and has funded a trade finance facility that provides financing with an advance rate of 100% of the cost of the required inventory. The facility provides letters of credit and cash payments to the overseas suppliers as well as funding for the freight, duty, and logistics to deliver the products.

The quick response by King Trade Capital in conjunction with the importer’s factor has allowed the company to finance its entire supply chain, fulfill the immediate orders, and begin the process of improving trade terms with its supplier base, putting them on the road to a successful turnaround.

King Trade Capital is the country’s oldest and largest independent purchase order and contract finance company. KTC is focused on providing purchase order and contract finance for small to middle-market companies nationwide. Since 1993 KTC has provided more than $1.5 billion of capital in over 300 public and private companies worldwide.







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