Daily News: March 22, 2013

King Trade Capital Offers $1MM Supply Chain Finance Solution

King Trade Capital (KTC) established a $1 million supply chain finance solution for a fluid pump designer and importer. KTC’s facility will allow the client to fulfill a six-figure backlog of orders and the ongoing relationship will allow the client to double monthly sales by financing payments to multiple international suppliers.

KTC was introduced to the client by its current asset-based lender (ABL) when the lender recognized the client’s growing backlog and its need for additional capital over and above what the ABL facility provided. The client’s growth was so exponential the ABL inventory advances could not provide the cash needed in advance of delivery of inventory to the client’s warehouse.

KTC offered a solution utilizing the purchase order backlog and sales history to fund the purchase of more inventory from overseas. KTC established an inter-creditor with the ABL, who subsequently converted to a straight A/R facility as KTC stepped in to provide an inventory finance solution offering higher advances on inventory and providing availability prior to delivery to the client’s warehouse.

Now with KTC’s facility in place, the client no longer drains its cash-flow and ABL availability to make payments to suppliers prior to goods arriving from Asia

King Trade Capital is focused on providing purchase order and contract finance for small to middle-market companies nationwide.