King Trade Capital Funds $4Million in PO’s for Chemical Supplier

Thursday, March 9, 2017

King Trade Capital (“KTC”) was approached by a chemical trading company located in the Northeast to help provide an immediate trade finance solution to help the company fulfill time sensitive deliveries of a chemical additive used to produce latex paint.

KTC’s client was a relatively new company with no significant financial history; however the principal had many years of experience in the industry and had developed strategic relationships not only in the U.S., but also overseas.

The client’s end customer was a large U.S. producer of paint and needed this additive to avoid a complete plant shut down during the busiest time of the year.  Three of the four U.S. plants that produced the chemical additive had been temporarily shut down.  This created a significant demand for the additive from overseas producers.

KTC’s client had strong relationships overseas and was able to source product for his customer at a fixed price.  The end customer placed over $4,000,000.00 in orders for immediate delivery to lock in supply.  KTC’s client approached banks with what he felt was a well-structured and secure trade. He found quickly that he was unable to finance the deliveries with traditional lenders based on his short financial history and small balance sheet. He quickly needed letters of credit to secure payment to the overseas factory in order to make the deliveries.

Within four business days, KTC was able to underwrite the company and the entire trade transaction to provide a trade finance solution utilizing a letter of credit. The letter of credit allowed the supplier to meet the time sensitive ship dates from overseas. The trade financing provided by KTC will enable its client to fulfill deliveries on time.

KTC was able to work directly with its client’s end customer to structure a direct repayment since the end customer agreed to pay upon shipping from the overseas port. Currently, product is being staged and shipped and the end customer is issuing more orders for follow on deliveries based on the client’s ability to execute.

About King Trade Capital

King Trade Capital (www.kingtradecapital.com) is the leading purchase order finance, trade finance, and contract finance company in the United States. Founded in 1993 King Trade Capital has grown as an independent finance company since its inception.  King Trade Capital is the US largest and oldest independent purchase order and contract finance provider, offering small to mid-sized companies in the US, UK and Canada flexible inventory finance solutions.  King Trade Capital helps clients across a broad range of industries, including manufacturing, apparel, food & beverage, technology, accessories, distribution. King Trade Capital can help companies with finance needs from $50,000 to $20,000,000.