King Trade Provides $3MM Trade Finance Commitment
King Trade Capital (KTC) announced the recent funding of a $3 million trade finance commitment to a Massachusetts-based importer and distributor of sporting goods accessories.
The company is fortunate to receive its largest ever seasonal sales orders from a major retailer. Because of the new sales volume the company changed its product sourcing to larger suppliers that can supply the necessary capacity to fulfill the orders.
This increase in sales volume and move to new suppliers left our client with insufficient terms with its suppliers and tight to no availability with its bank asset-based lender due to the seasonal nature of their business. KTC was introduced to the company by a specialty finance company helping search for the right trade finance solution.
KTC established a trade facility based on existing purchase orders and provides financing with an advance rate of 100% of the cost of the required inventory. KTC is issuing bank letters of credit to the overseas suppliers and providing funding for the freight, duty, and logistics costs of the customer orders.
The quick response by King Trade Capital included establishing an inter-creditor agreement with the asset-based lending arm of a regional bank. This solution allowed the company to finance the entire supply chain, fulfill the immediate orders and grow their company’s bottom line.