Daily News: June 25, 2012

King Trade Provides $1.5 Million PO Financing to Importer

King Trade Capital (KTC) announced the recent funding of a $1.5 million purchase order finance commitment for a Connecticut-based importer of home furnishings.

King Trade Capital was introduced by a turnaround consultant as its client was seeking to establish a purchase order finance and factoring relationship. The company received some large orders that needed to be immediately fulfilled but did not have sufficient open terms from its overseas vendors. King Trade Capital quickly established a facility that provides financing with an advance rate of 100% of the cost of the required inventory by issuing letters of credit to the company’s overseas supplier as well as funding for the freight, duty, and logistics costs.

The quick response by King Trade Capital, including introduction to a factor that had an established inter-creditor agreement with KTC, allowed the company to finance the entire supply chain and fulfill the immediate orders. As a result, this enabled the company to substantially increase its business with a major international retail chain.

King Trade Capital is an independent purchase order and contract finance company in the U.S. focused on providing purchase order and contract finance for small- to middle-market companies nationwide.