King Trade Capital Funds PO Finance Facility for Importer
King Trade Capital (KTC) announced the recent funding of a $1 million purchase order finance facility for a New York-based importer of wireless accessories.
KTC was introduced by the client’s factoring company as its client was seeking to establish a purchase order finance relationship which would support financing of the inventory required to fulfill a large program from a regional retail chain.
KTC said it established a structured inventory purchase funding facility that provides financing with an advance rate of 100% of the cost of the required inventory. The facility provided cash funding to the company’s overseas supplier for the cost of the in-transit inventory as well as funding for the freight, duty and logistics costs.
KTC established an inter-creditor agreement with the factor which allowed the company to establish a significant sales program with the retail chain. In addition, the client requested a two year facility with KTC so they know that they have the capability to take on larger orders from a growing customer base with no strain on cash-flow.