King Trade Capital completed a $2 million purchase order facility for a fragrance company based in New York.
A friend in the asset-based lending world who was helping the client find a purchase order finance solution, to help the company execute on its large seasonal orders from several U.S. retailers, contacted KTC. The size of the orders exceeded its current credit facilities at its ABL.
The financing required structuring working agreements with the clients’ four existing secured creditors. KTC’s finance solution ultimately provides the client with an end-to-end finance solution while offering the liquidity needed to execute on seasonal sales. Through issuance of documentary letters of credit, KTC is helping the client purchase inventory from its overseas suppliers to ensure timely delivery to the end customers.
The existing accounts receivable financing facility will provide the client with additional liquidity once goods have been shipped. The client now has the ability to fulfill its seasonal orders and seek larger orders.