King Trade Capital (KTC) established a $1 million supply chain finance solution for a Texas-based startup.

KTC said it was contacted by a nationwide factor to help accelerate the startups sales growth in the apparel industry.

The owners of the startup have extensive relationships with small- to mid-size retailers and years of experience sourcing goods from overseas factories. Through relationships in the apparel industry, the owners were able to secure annual production programs to manufacture branded goods on behalf of several men’s and women’s brands.

Due to the fact the client was a newly established entity with no financial or operating history, it was unable to obtain funding through traditional financing sources. The client was in need of a financial partner capable of providing the capital and structure necessary to have fabric sourced and garments manufactured overseas.

Initially the client’s factories wanted cash deposits in order to purchase fabric that would then be cut and sewn into finished garments. Payment for the cut and sew operations would then be due upon shipment. The client, knowledgeable of the risks associated with sending cash deposits overseas, were seeking a safer solution to finance their inventory purchases.

KTC’s $1 million supply chain finance facility provided the client with a less expensive alternative to raising equity allowing this startup to grow through increasing sales. The client can now focus their attention on growing the number of SKU’s they manufacture for each retailer as well as expanding their customer base.