King Trade Capital provided a $2 million purchase order facility to a plastic cup supplier.
A U.S. bank that was putting together a supply chain receivable finance facility for the plastic cup supplier contacted King Trade Capital, recognizing the supplier would need additional capital to support growing pre-shipment costs. The bank, having previously worked with King Trade Capital, referred it to the cup supplier to offer a pre-shipment finance solution to make payments to Chinese vendors and logistics companies to grow production in China to fulfill growing sales.
King Trade Capital reviewed the client’s and suppliers’ capabilities to import goods during the pandemic and current supply chain disruption and offered cash funding to cover the purchase of cups. King Trade Capital is also paying the logistics costs to support deliveries, allowing the client to grow sales by 70%.
King Trade Capital’s PO finance solution was put in place and funded within two weeks. The offering provides a solution for the client by joining King Trade Capital’s pre-shipment finance solution with two of the clients’ receivable lenders. King Trade Capital structured an intercreditor agreement with the client’s bank’s supply chain finance group and also entered into an intercreditor agreement with the client’s incumbent factoring provider, which is advancing on the balance of the client’s receivables.
