King Trade Provides $2.5 Million PO Finance Commitment for Importer
King Trade Capital (KTC) announced the funding of a $2.5 million purchase order finance commitment for a New York-based importer of licensed footwear.
King Trade Capital was introduced by a CPA as its client was seeking equity investors but was advised by its CPA to utilize purchase order financing which was a better option than raising permanent capital to fulfill large seasonal orders. King Trade Capital quickly established a facility that provides financing with an advance rate of 100% of the cost of the required inventory by issuing letters of credit to the company’s overseas supplier as well as funding for the freight, duty, and logistics costs.
The quick response by King Trade Capital, including introduction to a factor with who an established inter-creditor agreement was already in place, allowed the company to finance the entire supply chain and fulfill the immediate orders. As a result, this enabled the company to be in solid financial position to substantially increase its business with a major big box retailer.
King Trade Capital is an independent purchase order and contract finance company in the U.S. focused on providing purchase order and contract finance for small- to middle-market companies nationwide.