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King Trade Capital Provides $1.2MM Production Finance Facility to Sumsung Supplier

September 22, 2016, 07:38 AM
Filed Under: Manufacturing

King Trade Capital announced the funding of a $1.2 million production finance facility for an equipment supplier to Samsung.  A large national factoring company recently contacted King Trade Capital (“KTC”) regarding a prospect with a $3.5 million order from Samsung.  The factor was originally introduced to the prospect by a trusted banking referral source but neither of them could help until the production was completed. 

Since the factor could not help with the purchase order funding, they wanted to refer the prospect to a purchase order funding company they trusted and had the capacity and expertise to handle full production as well as the ability to assess, underwrite and close quickly.

The West Coast-based prospect manufactures tools used in the coating of substrates primarily for the telecommunications industry.  Despite having been in business for over ten years and revenues tripling over the past 12 months, the prospect had been able to support its working capital needs through deposits and internally generated cash flow.  However, in early 2016 the company moved locations to support its growth.  The move, coupled with the high growth, put a strain on the company’s cash needs.  When it landed more Samsung business the prospect knew it needed incremental funding to help ensure the machine was delivered on time and on budget.  Samsung placed significant pressure on the prospect to expedite delivery of the equipment since it was to be used as part of Samsung’s plant expansion overseas.  It was critical KTC was able to get in place quickly to provide the finance solution the prospect was seeking.

KTC was able to evaluate, underwrite and close on the production finance solution within ten business days.  This enabled the prospect to source the needed components in a timeframe that will allow the company to fulfill the delivery quickly. 

Bryan Ballowe, COO of KTC remarked, “This is another example of KTC’s ability to not only provide incremental growth capital to the marketplace, but also demonstrates King Trade’s abilities as the largest and most reliable source of purchase order funding in the country.”    
King Trade Capital is the country's oldest and largest independent provider of purchase order and contract finance for small to mid-sized companies in the U.S., UK and Canada. Since 1993 KTC has provided more than $2 billion of capital in over 350 public and private companies worldwide. 

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