King Trade Capital funded a $750,000 purchase order facility for a small California-based importer and wholesaler of electronics and related accessories.

The company was experiencing growth due to celebrity endorsements of its products but the recent buyout of a partner in the business resulted in a more thinly capitalized company and a shortage of liquidity to fund continued growth.

After pursuing several larger retail chains, the company landed some large sales programs that require an increased level of inventory financing to fulfill the growing orders. After evaluating the various types of capital available, the company’s consultant referred King Trade Capital to create a supply chain finance solution.

The solution consisted of a combination of issuing letters of credit to overseas suppliers before production began, and cash funding of inventory in transit to other suppliers at a 100% inventory advance rate. In addition, King Trade Capital’s facility included the ability to fund the cost of related freight, logistics and warehousing associated with importing the inventory.

Once the pre-sold inventory financing solution was established, King Trade Capital brought in a factoring company as part of the total finance solution. The receivable factoring component provided the company additional liquidity once the goods were shipped and delivered to various retail customers.