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King Trade Capital Provides $1MM to Apparel Designer

January 06, 2015, 07:23 AM
Filed Under: Apparel

King Trade Capital (“KTC”)  announced a $1 million  purchase order financing facility for a Maryland-based apparel designer and manufacturer. KTC was approached by a consultant who had previously worked with KTC with regard to a growing apparel designer that had obtained a large order from a major regional retailer.  The retailer desired to make this designer a key part of its ladies apparel lifestyle collection. While the apparel designer had previously delivered successfully on smaller orders, this was to be a major program requiring both working capital and consultative structuring on integrating international fabric purchases with final domestic production of the garments. Due to KTC’s extensive experience in both production financing and the apparel industry, the facility was structured as a production or “work in process” facility. This included issuing letters of credit for fabric purchases from an overseas supplier, funding for freight, logistics costs and making cash payments to two domestic-based contractors for the cut, make (sew) and trim (“CMT”) production in the U.S. for completing the garments.

KTC structured and funded this transaction in a timely manner before the shipping constraints of Chinese New Year impacted the logistics of transporting goods on a timely basis. KTC’s unparalleled experience in providing an import finance solution, as well as a domestic production solution, provided the Client with the incremental capital needed to fulfill orders and grow the business.

King  Trade Capital ("KTC") is the country's oldest and largest independent  purchase order and contract finance company focused on providing  purchase order and contract finance for small to middle-market companies  in the US, 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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