King Trade Provides Seasonal PO Facility to Tool Box Supplier
King Trade Capital announced funding a $1.3 million seasonal purchase order facility for a licensed logo tool box supplier.
The company completed a successful test program with a nationwide big box retailer in 2013 and was pleased to receive orders for this year’s Black Friday and holiday programs.
The retailer experienced a nearly complete sale through of our client’s products in just two weeks during the previous year’s test order. This year the retailer decided to make the client’s products the centerpiece of a men’s holiday promotion within the stores. The retailer has committed advertising space for the company’s products in over 1 million mailers.
The size of this year’s orders are seven times the original test orders resulting in a capital need that outstripped what the company’s balance sheet could support. KTC was quickly able to come up with a solution to not only finance the cost of goods, but also support payments for freight, duties and warehouse logistics costs.
KTC’s financing solution supported 100% of the direct costs associated with fulfillment of the orders and products are now arriving in stores ahead of the big selling season.