Daily News: September 22, 2016

King Trade Provides $1.2MM Facility to Equipment Manufacturer

King Trade Capital (KTC) funded a $1.2 million production finance facility for an equipment supplier to Samsung.

A large national factoring company contacted King regarding a potential client with a $3.5 million order from Samsung. The factor was originally introduced to the company by a banking referral source, but neither could provide financing until the production was completed.

The client is a West Coast-based company that manufactures tools used to coat substrates, primarily for the telecommunications industry. With more than 10 years in business and revenues tripling over the past 12 months, the company had been able to support its working capital needs through deposits and internally generated cash flow.

However, the company relocated to support its growth in 2016. The move, coupled with rapid growth, put a strain on the company’s cash needs. When it landed more Samsung business, the company knew it needed incremental funding to help ensure the machine was delivered on time and on budget. Samsung placed significant pressure on the company to expedite delivery of the equipment, since it was to be used as part of Samsung’s plant expansion overseas.

KTC was able to evaluate, underwrite and close on the production finance solution within 10 business days, which enabled the company to complete production quickly.

“This is another example of KTC’s ability to not only provide incremental growth capital to the marketplace, but also demonstrates King Trade’s abilities as the largest and most reliable source of purchase order funding in the country,” said KTC COO Bryan Ballowe.