King Trade Capital (KTC) completed a $1.5 million purchase order-based production finance facility for a dry baked goods manufacturer in the western United States.
KTC was referred to the client by an asset-based lender that couldn’t help with the company’s seasonal production finance needs. Due to the seasonality of its business, the client did not have sufficient availability under its existing asset-based lending facility to allow it to scale production ahead of the holiday deliveries.
The client needed a finance solution to provide liquidity to allow it to pay various vendors for raw materials and packaging. The client also needed help with production costs to produce the private label products to fulfill its large fall and holiday programs from a nationwide grocer.
KTC moved quickly to underwrite the client’s capabilities and provide capital to the client for purchase of necessary ingredients and materials. KTC worked closely with the current asset-based lender to put in place an intercreditor agreement that provides the client with the liquidity needed to manufacture and deliver its purchase orders while utilizing the current asset-based facility.
