King Trade Capital (KTC) provided a $2.5 million purchase order facility to support a provider of seasonal onsite flu vaccine clinics.
The client has been in business for more than 20 years and focuses on providing onsite vaccine clinics at its customers’ facilities. During the first few years of the COVID-19 pandemic, the company suffered a 74% decline in revenues from pre-COVID-19 sales. The client’s customers included auto manufacturers and nursing home providers requiring specialized procedures and vaccines geared toward the elderly.
The client contacted KTC to discuss financing renewed growth and to provide a finance solution to purchase large quantities of the flu vaccine for its many clinics.
KTC established a responsive cash finance solution that supported CDC procedures and vaccine allocation practices for flu vaccines. These practices give clients a few days to pay licensed distributors for available flu vaccines once notified of allocation availability. If the client does not pay for the allocation, it is sold elsewhere, as the seasonal demand is great, meaning the client must wait to see if another allocation becomes available in time to support its customers. The size of this season’s orders and the financial hardship from the previous year put the company in jeopardy of being unable to support its customers’ clinics without KTC’s funding support.
KTC understood the client’s capabilities and its experience delivering flu vaccines to customers and established a unique purchase order finance facility to fund the purchase of the flu vaccine inventory to supply clinics and allow the company to keep its clinics on schedule starting in September.
KTC’s financing will help the company add $6 million of profitable sales that it would otherwise be unable to execute upon in 2022 without KTC’s support.