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King Trade Capital Provides $8MM Trade Finance Facility to Home Goods Company

January 30, 2019, 09:00 AM
Filed Under: Home Services

King Trade Capital (KTC) announced a new $8,000,000.00 trade finance relationship with a California-based home goods and party supply company that has a fast-growing relationship with one of the world’s largest online retailers.

KTC was introduced to the company by a finance industry consultant who was helping the 5-year-old company with strategies to handle its fast growth and its relationship with its largest customer.

During its five year history, our client established itself as a trusted supplier to the world’s largest online retailer. As their business relationship solidified, the online retailer recognized that our client had the infrastructure and team to handle large bulk orders and its purchase orders grew significantly.

The quickly-expanding relationship with the online retailer created a working capital strain on the company as it needed to be able to fulfill bulk orders while continuing to fulfill its existing orders. The size of the new orders put a strain on the client’s working capital and they were at risk of being unable to perform upon hard earned growth in sales. In fact, the company had to reject purchase orders due to the lack of capital needed to fulfill the orders on time.

After being introduced to the client, the KTC team quickly assessed that the company was competent and simply needed KTC to provide the capital it needed to grow their sales and profits. KTC structured a trade finance facility that met their unique growth needs and brought in a nationwide receivable lender with a specialty in the online retailer to provide liquidity after the retailer was invoiced.

KTC’s facility pays the client’s vendors the cash they need in order to ship the goods in a timely manner, making it possible for the client to fulfill all the purchase orders that are received from their end customers. The trade finance facility is designed to not only help the company fulfill their current PO needs but also structured to help any future sales expansion.

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