KTC Provides Supply Chain Finance Commitment for Importer
King Trade Capital (KTC) announced the recent funding of a $750,000 supply chain finance commitment for an Ohio-based importer of accessories.
The importer, who was seeking to establish a supply chain finance facility to support purchase of inventory needed to fulfill a large order from a major retailer, did not have sufficient open terms from its vendors and had reached the limit of its bank line of credit. King Trade Capital established a facility that provides financing with an advance rate of 100% of the cost of the inventory needed to fulfill the orders.
Using letters of credits for overseas suppliers and cash payments to domestic suppliers and logistics companies, KTC provided a supply chain solution that enables the company to grow.
The finance solution includes multiple inter-creditor agreements, such as the commercial bank with the existing line of credit, as well as a new specialized receivables finance facility at a separate major bank. This allowed the company to finance the entire supply chain using alternative finance sources as needed.