King Trade Capital completed a $3 million purchase order finance facility for an aircraft parts company based in Texas. King Trade Capital was introduced to the company by a prior client.

The aircraft parts company was seeking a finance solution to help execute upon the purchase and refurbishment of parts to fulfill sales of an initial $18 million of purchase orders from major U.S. airlines.

King Trade Capital worked to underwrite the suppliers, refurbishment facility and the airline purchase orders the client received to create a finance solution that provided financial support. King Trade Capital worked closely with the client’s existing asset-based lender to put in place an end-to-end finance solution offering purchase order financing to fulfill the orders tied together with the ABL’s facility, governed by an intercreditor agreement.

The offering provided by King Trade Capital includes cash payments to the client’s suppliers to purchase aircraft parts for further refurbishment and FAA tagging before delivery to airlines. Upon delivery of the parts to airlines, the existing ABL will advance according to their current ABL facility.

King Trade Capital’s purchase order finance solution provides the client with the financial support to purchase the necessary aircraft parts as needed to fulfill orders and open the opportunity to grow programs with airlines to as much as $30 million through Q1/24.