Daily News: October 18, 2016

King Trade Provides $7MM PO Finance Facility to Importer


King Trade Capital (KTC) funded a $7 million PO finance facility for a drinkware importer based in Oklahoma.

KTC was approached by a large national bank with a referral to a one-year old importer of drinkware that had established a new relationship with one of the country’s largest big box retailers. The retailer was seeking a partner that could ramp production immediately for a rollout of a modular program of unlicensed and licensed drinkware.

Although the company was young and its balance sheet too small to support the financing need of the new program, KTC instead looked at the company’s ability to perform in order to craft a finance solution that supported the retail program. The prior experience of the principals, its knowledge of production and logistics coupled with its connections that allowed the company to secure the large program, helped provide validation to KTC that if provided proper capital, it would succeed.

Given the early stage of the business and the size of the capital need, most lenders would require the company to raise equity. KTC viewed the business differently and was able to structure a PO and trade finance facility, in conjunction with a national factor, which provided the company a comprehensive finance solution.

KTC was able to evaluate, underwrite and close the PO finance solution in a time frame that allowed the company to finance 100% of the cost of goods and begin its initial deliveries on time. By doing so, the bank further solidified its relationship with the company through its desire to put the client’s needs first by making an introduction to a trusted finance partner, King Trade Capital, that delivered an alternative finance solution to help its customer grow.

Clint Stanton of KTC said, “We are humbled by the continued confidence placed in us by our referral sources that provides us the opportunity to help their clients to take their businesses to the next level. We are thankful for our relationships in the marketplace and excited about helping another young business with excellent growth prospects.”