Daily News: July 3, 2013

King Trade Provides $3.5MM PO Facility to Lighting Wholesaler

An international bank introduced King Trade Capital (KTC) to a consultant seeking a finance solution for a New York-based wholesaler of portable lighting products. The company’s product designs had caught the attention of several major retailers resulting in a spike of orders from new customers which triggered an immediate capital need.

KTC was able to structure a $3.5 million purchase order facility to support the exponential growth in orders. KTC quickly established an inter-creditor agreement with a national factoring company to provide the accounts receivable financing required by the company to expedite closing.

KTC’s trade solution will provide letters of credit and documents against payment financing required by the company’s factory to accommodate the large increase in inventory to fulfill the orders. It will also allow the company to revert focus back on what landed the new customers and orders in the first place, continuous development and innovation of new and existing products.