KING TRADE CAPITAL PROVIDES $750,000 PURCHASE ORDER FACILITY TO A WEST COAST TOY DISTRIBUTOR

Wednesday, September 7, 2016

KING TRADE CAPITAL PROVIDES $750,000 PURCHASE ORDER FACILITY TO A WEST COAST TOY DISTRIBUTOR

King Trade Capital recently closed and funded a purchase order finance facility for a West coast based toy distributor selling through wholesale and retail channels. The Client was referred to King Trade Capital by their existing factor seeking a solution to help support the Client’s rapid sales growth.

Two large wholesalers placed $1.6MM of seasonal orders with the Client, equal to the Client’s entire prior years’ sales. In addition to the large seasonal orders, the Client’s direct retail sales were also increasing. Due to the lack of additional collateral and the factors inability to provide additional capital to allow the company to buy more inventory, King Trade Capital was brought in for a purchase order finance solution.

A facility was structured to support payments to the Client’s suppliers via documents against payment. King Trade Capital helped structure the financing so the suppliers would produce the goods, ship them and be paid once the goods were on a ship. Given the many shipments to take place during a 4-6 week timeframe, the Client needed to ensure that the suppliers were paid current so they did not jeopardize the timely delivery of all shipments to the wholesalers. King Trade Capital’s structure provided the availability to finance 100% of the cost of goods, inclusive of freight and duties.

The end result;

  • The Client was able to obtain the capital needed to fulfill the new orders and the goods will arrive on time,
  • The factor will maintain and grow their relationship with the Client due to their clients introduction to King Trade Capital and the purchase order finance solution provided,
  • The Client will have a facility in place with King Trade Capital to support the growing, incremental capital needs of their growing sales.

King Trade Capital is the country's oldest and largest independent provider of purchase order and contract finance for small to middle-sized companies in the U.S., UK and Canada. Since 1993 KTC has provided more than $2 billion of capital in over 350 public and private companies worldwide.  www.kingtradecapital.com