King Trade Capital established a trade finance facility for a Florida-based company that develops, manufactures, and sells action figures to various large US retailers.
KTC was introduced to the 9 year old company through a referral from a one of the nation’s largest factoring companies. King Trade was brought in to supply a growth capital alternative to help the client grow their sales well beyond their current cash flow availability.
The toy developer has seen sales grow to the point that they needed more capital to support additional vendor credit terms and fulfill their growing orders. King Trade financed up to 100% of the inventory cost of goods to fill customer orders, which supported the company’s increased capital needs in conjunction with its existing factor and allowed it to quickly grow sales.
The company also needed a finance solution to secure payment to their suppliers in the U.S. and China, since their inventory needs exceed the open credit terms provided by the vendors. King Trade quickly structured and closed a trade finance facility to meet growth capital needs, allowing the company to purchase more inventory than its balance sheet allows and offering the factor the opportunity to provide even more factoring on the increasing receivables.
The finance solution KTC provided included documentary letters of credit to the Chinese vendors and cash payments to the U.S. suppliers. IT also provided the incremental financing needed to keep the company’s vendors producing and shipping to fulfill the ever growing end customer purchase orders and allowed the company to benefit from profitable sales they could not otherwise support.
King Trade Capital is the country’s oldest and largest independent provider of purchase order, trade and contract finance for small to middle-market companies headquartered in the U.S., UK and Canada.
