King Trade Capital completed a $8 million purchase order finance facility for a popular growing sorbet brand.
King Trade Capital was introduced to the client by an investment bank looking for a finance solution to replace a previous lender that was not capable of keeping up with the company’s growth.
“This $40 million company interested us a great deal as they were entrepreneurs who were successfully building a business and needed a capital partner that understands the capital needs of rapid growth,” Andrew Chong of King Trade Capital, said. “Having started by selling their unique sorbet products through restaurants the company and its products started to gained popularity that led them to make their way into grocery chains and now are seeing enormous sales growth in big box retailers.”
The clients need for a growth capital solution required the ability to finance cash payments for inventory being manufactured overseas and imported by the container load into the U.S. Each year the company has experienced bigger and bigger seasonal promotional programs and larger seasonal sales which requires it to bring in a large amount of inventory in advance of the sales season. The inventory has to be staged in cold storge facilities across the country in order to be promptly distributed to customers over a short window of time during Spring and Summer.
King Trade Capital analyzed the seasonal commitments and purchase orders issued by the end customers, and inside of two weeks devised a finance solution to provide cash payments to the client’s overseas supplier to fund the manufacture and delivery of the inventory allowing our client to add about $30 million of profitable sales this year.
