KTC Completes PO Facility for Footwear Designer
KTC completed a recent purchase order facility for a footwear designer.
King Trade Capital was contacted by a national factoring company to help an existing client grow. The client was increasing sales year over year by 100% and had been financing overseas production with deposits to the manufacturer. Due to both seasonality and continued growth, the client did not have the ability to continue to support the amount of deposits required to pay for start of production. While the factoring company was supporting their client with working capital advances on A/R and credit protection, they would not provide overadvances for deposits.
The factor introduced King Trade Capital due to its expertise in funding international inventory purchases and ability to properly structure the financing of in-transit inventory.
King Trade Capital quickly worked with the client and the factor to come up with a finance solution, which included meeting with the client’s overseas factory to provide them with comfort that there was a solution that could be structured to meet the requirements of all parties. The solution entailed using letters of credit as a safe financing alternative to deposits as well as providing advances to fund the associated freight and logistics costs.
The client now has its’ finance partners and the overseas supplier working together to achieve a common goal, fulfilling and supporting future sales growth. King Trade Capital’s unmatched experience in providing import finance solutions offers additional incremental capital that benefits the company, its lenders and the overseas suppliers, who can produce and ship knowing they will be paid on a timely basis. Most importantly, it allows the Client to accept additional orders from new and existing customers with the confidence that they have the financing and the capability to fulfill them.