King Trade Capital completed a $9 million purchase order finance facility for a private equity backed athleisurewear company.
The 20-year-old company was acquired in 2020 by a private equity investor expanding its’ active lifestyle inspired portfolio of companies. The private equity firm helped the client obtain a line of credit with a bank for the initial two years of its ownership of the business but as the business grew, the client was in need of additional working capital and liquidity the bank couldn’t offer to support rapidly growing sales.
King Trade Capital was contacted by the bank to investigate PO financing as a solution to help the company scale its business. King Trade Capital assessed the finance need, proposed and underwrote the client company while working along with a large national factoring company brought in by the PE investor. King Trade entered into an intercreditor with the factor as they were to advance against the clients accounts receivables upon delivery to the end customers.
King Trade Capital ’s solution now provides cash payments to the client’s overseas manufacturers upon presentation of documents making sure there is a consistent and smooth flow of production and delivery of inventory to the client’s end customers.
The KTC trade finance solution coupled with the factors liquidity provides the financing needed to keep the client’s manufacturers producing and shipping while giving the client the ability to seek fast sales growth with the confidence they can deliver on their growing orders.
