Daily News: January 6, 2015

KTC Provides PO facility for Apparel Designer

King Trade Capital announced a $1 million purchase order financing facility for a Maryland-based apparel designer and manufacturer.

KTC was approached by a consultant who previously worked with KTC with regard to a growing apparel designer that had obtained a large order from a major regional retailer. The retailer desired to make this designer a key part of its ladies apparel lifestyle collection. While the apparel designer had previously delivered successfully on smaller orders, this was to be a major program requiring both working capital and consultative structuring on integrating international fabric purchases with final domestic production of the garments. Due to KTC’s extensive experience in both production financing and the apparel industry, the facility was structured as a production or work-in-process facility. This included issuing letters of credit for fabric purchases from an overseas supplier, funding for freight, logistics costs and making cash payments to two domestic-based contractors for the cut, make (sew) and trim (CMT) production in the U.S. for completing the garments.

KTC structured and funded this transaction in a timely manner before the shipping constraints of Chinese New Year impacted the logistics of transporting goods on a timely basis. KTC’s unparalleled experience in providing an import finance solution, as well as a domestic production solution, provided the client with the incremental capital needed to fulfill orders and grow the business.