Daily News: December 4, 2017

King Trade Capital Finances Two New Clients for $6.7MM

King Trade Capital financed two new client relationships in November.

The first relationship was with an East Coast consumer products company with founders that have past experience building successful companies. An asset based lender introduced KTC to the company, hoping to add the company to its portfolio, but needed assistance from KTC to help the company get large production order goods from a big American retailer.

KTC financed components produced in China and shipped to third party assemblers where they are assembled into finished goods prior to delivery. They structured payments and credit such that the various suppliers are paid in order to deliver not only finished goods but also the components.

King Trade’s financing will provide $6 million of the cost of goods, allowing the company to fulfill $10 million in orders to the retailer.

The second new relationship was a trade finance relationship with a growing small business selling sunglasses to big box retailers.

The company had been in talks about two different PO’s which totaled $700,000. The company’s factoring company introduced King Trade to it, in order to bring in a trusted PO finance solution.

KTC assessed the company’s needs and offered a letter of credit scenario that interested the Chinese suppliers and saved the company significant financial costs. In addition to offering the LC’s for production, KTC came up with a cash advance scenario that offered the client the ability to execute its business plan while its goods were being produced overseas.

King Trade’s financing allows the small business to grow its sales with a major customer by delivering the current orders while also providing capital to grow its sales team and execute its growth plans.

King Trade Capital is the country’s oldest and largest independent provider of purchase order, trade and contract finance for small- to middle-market companies headquartered in the U.S., UK and Canada.