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King Trade Provides $1MM to Surveillance Equipment Distributor

September 24, 2014, 07:22 AM
Filed Under: Distribution

King Trade Capital (KTC) announced the recent funding of a $1 million government contract finance commitment for a Florida-based company. The company is a distributor of surveillance equipment to a prime contractor of the U.S. Government.

KTC was contacted by a factor specializing in government contractors. The factor  had a client in need of a funding solution with a large U.S. Government contract that needed to be fulfilled immediately. Although the company had a factoring facility, they did not have sufficient open terms with their domestic contract manufacturer for their large order.  KTC quickly assessed the opportunity and the client’s ability to perform. KTC established a facility that provides financing with an advance rate of 100% of the cost of the required inventory through issuing  domestic letters of credit to the company's supplier as well as funding for the freight.

The quick response by KTC, including an intercreditor agreement with the referring government factor, allowed the company to finance the entire order with a combination of government contract financing and factoring. This was possible due to our team’s expertise in financing sub to prime contractor transactions where the end customer is the U.S. Government.  As a result, this enabled the company to substantially increase its business and validate its ability to perform to its supplier and the U.S. Government, which will result in increased future orders.

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.

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