FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


King Trade Provides $1.5MM PO Finance Commitment for Importer

August 12, 2014, 07:09 AM
Filed Under: Importer

King Trade Capital (KTC) announced the recent funding of a $1.5 million purchase order finance commitment for a European-based importer of toys and games. After opening a subsidiary in the U.S. the importer started landing a series of increasingly large orders from several U.S.- based mass merchants, This success pushed the European parent company to seek to establish stand-alone financing for its U.S. subsidiary so that their working capital in Europe was not constrained by support of the U.S. subsidiary.

KTC was introduced by an asset-based lender to help provide a finance solution. The ABL liked the company but was unable to assist given that the subsidiaries balance sheet was not a fit. KTC was brought in to offer a solution with purchase order financing tied together with factoring. KTC quickly established a facility that provides financing with an advance rate of 100% of the cost of the required inventory in transit by making payment against documents to the company's overseas suppliers. Funding for the freight, duty, and logistics costs were also provided to cover the complete supply chain finance requirements of the company.

The quick response by KTC, including introduction to a factor with whom an established inter-creditor agreement was already in place, allowed the company to finance the entire supply chain and fulfill  immediate orders.  As a result, this enabled the company to be in a solid financial position to substantially increase its business with several mass merchants.

King Trade Capital is the country's oldest and largest independent and contract finance for small to middle-market companies in the U.S., UK and Canada. Since 1993 KTC has provided more than $1.5 billion of capital in over 300 public and private companies worldwide.

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.