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King Trade Capital Funds $1.4MM Facility to Leather Goods Importer

July 14, 2015, 07:39 AM
Filed Under: Importer

King Trade Capital announced the recent funding of a $1.4MM purchase order facility for a Texas based importer and distributor of leather goods and accessories. The company, having been in operation only two years, was having difficulty securing the additional credit needed to support their year over year sales growth of 100%. Since inception, they relied on a small line of credit from a community bank, based on the owner’s personal guarantees. The additional capital requirements needed to support the growing sales was not something the bank was willing to offer. The bank felt uncomfortable with any larger exposure levels due to the fact the Company was still incurring startup losses.

In search of a finance solution, the company reached out to a factor that then referred the company to King Trade Capital. Within a week, King Trade Capital established a purchase order finance facility that provides funding of up to 100% of the cost of goods required to fulfill the end customer purchase orders. King Trade Capital’s facility provides financing of the necessary inventory through use of letters of credit, cash against presentation of documents, and also provides additional capacity to support payment of freight, logistics and duties as needed by the company.

King Trade Capital’s facility was structured in tandem with the factor’s receivable facility to provide the company with a complimentary finance solution. The total finance solution provides increased credit availability for inventory to fulfill their backlog of purchase orders and additional liquidity on the accounts receivable once those orders have been fulfilled.

King Trade Capital is the country's oldest and largest independent purchase order, trade, and contract finance provider for small to middle-market companies in the U.S., UK and Canada. Since 1993, King Trade Capital has provided almost $2 billion of capital to over 350 public and private companies worldwide.

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