Daily News: July 12, 2013

KTC Provides $5MM PO Finance Commitment for Toy Importer

King Trade Capital announced the recent funding of a $5 million purchase order finance commitment for an Illinois-based importer and distributor of novelty, craft and toy products.

The investment banking arm of a New York-based specialty finance company introduced King Trade Capital to its client, which was seeking to implement a turnaround and needed a funding solution to purchase the inventory needed to fulfill large sales orders from major retailers.

The solution that was structured for the importer included refinancing its bank line with a factoring facility. Since it no longer had sufficient open terms or liquidity to secure payment to its overseas manufacturers, King Trade Capital quickly established a finance solution and funded a trade finance facility that provides financing with an advance rate of 100% of the cost of the required inventory. The facility provides letters of credit and cash payments to the overseas suppliers as well as funding for the freight, duty, and logistics to deliver the products.

The quick response by King Trade Capital in conjunction with the importer’s factor has allowed the company to finance its entire supply chain, fulfill the immediate orders and begin the process of improving trade terms with its supplier base.