Daily News: June 13, 2018

King Trade Provides $5MM PO Facility for Textile Firm

King Trade Capital provided a $5 million purchase order facility to an Arizona-based textile products company.

An old client contacted King Trade to help a new company that needed financing to help scale up their business in light of incredibly fast sales growth.

The company originally sold directly online to customers and then had great success on the TV show “Shark Tank.” Shortly after their “Shark Tank” appearance, the company built an even bigger following through social media for their direct-to-consumer sales.

KTC’s old client was brought in to work with the company and help it increase production capacity so it could attract and execute on deliveries to major brick and mortar retailers that wanted to place large orders. This relationship significantly increased the company’s need for capital to finance the production being brought in from Asia.

King Trade Capital was comfortable moving forward with the new company due to the good product idea and the past relationship with the production partners. King Trade worked quickly with the client alongside a new factoring partner to structure an end-to-end finance solution that allowed the client to fulfill the purchase orders from major retailers.

The solution consisted of issuing letters of credit to the suppliers overseas to get products produced and shipped to the end customers. The addition of the factoring company provided the company with additional liquidity once goods shipped to the end customer.

”The solution King Trade Capital was able to provide will allow the company to expand their customer base and sales, while addressing liquidity issues experienced by many small growing companies. They can now grow without the worry that they will tap out their balance sheet and be unable to execute on growing sales,” said Andy Chong of King Trade Capital.