Daily News: June 7, 2012

King Trade Provides $2.5MM PO Finance Commitment to Importer


King Trade Capital (KTC) announced the funding of a $2.5 million purchase order finance commitment for a New York-based importer of point of purchase displays used by big box retailers.

King Trade Capital was introduced to the client by a consultant working with the company to refinance its bank line. During the process of assessing bank options, the company received several large orders in need of immediate funding in order to be fulfilled on time. The company needed a short-term bridge finance solution prior to closing its refinancing with a new bank.

KTC quickly assessed the capital needs of the client and provided a finance solution that offered financing from KTC with an advance rate of 100% of the cost of the required inventory. KTC structured and issued letters of credit to the company’s overseas supplier to purchase inventory and the facility also covered 100% of the related freight, duty, and logistics costs. The quick response by King Trade Capital, including introduction to a factor, which KTC already had an established inter-creditor agreement, allowed the company to finance the entire supply chain and fulfill the immediate orders in the midst of the transition to a new senior lender.

As a result, the company’s cash-flow needs were bridged and they were able to substantially increase business with a major big box retailer while it continued to finalize its new bank facility.

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.