King Trade Provides PO Finance Commitment for Gov’t Contractor
King Trade Capital (KTC) announced the recent funding of a $600,000 purchase order finance commitment for a Virginia-based distributor of telecommunications devices to the U.S. government.
King Trade Capital was contacted directly by the client who was a small, minority-owned business that was seeking to establish a purchase order finance relationship as the company received a large U.S. government contract that needed to be fulfilled immediately. Although the company was the exclusive distributor for its supplier’s product, it did not have sufficient open terms with the supplier for this size order.
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 a domestic letter of credit to the company’s supplier as well as funding for the freight. The quick response by King Trade Capital allowed the company to finance the entire order and displayed our commitment to financing smaller transactions particularly where sales are being made to the U.S. government.
As a result, this enabled the company to substantially increase its business and validate its ability to perform to its supplier and the U.S. government, which will now increase its future orders.
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.