Importer Gets Seasonal Finance Solution For The 2015 Holidays

Wednesday, August 5, 2015

King Trade Capital is pleased to extend a $3.5MM purchase order finance facility to a Christmas gift importer holding $5MM of orders from big box retailers.

The Client reached out with a problem they needed help solving. Last year, the Company made a large investment in inventory, which was financed by their current traditional lender. That lender ended the year in an overadvance position and was very uncomfortable moving forward. As the Client started receiving its orders for the 2015 holiday season, they faced two problems, (i) their current lender wanted out of the inventory position and (ii) the size of the inventory purchase to fulfill the 2015 orders outstripped the current lender’s financing capacity.

King Trade Capital was able to structure a facility for the Client that addressed the capital needs related to the 2015 orders and provided the current finance company with a means of repayment through profits of the 2015 orders financed by King Trade Capital.

King Trade Capital’s facility helps support the overseas production of components that will be shipped to the Client’s 3PL where the final products will be assembled, packaged and shipped to retailers in time for the Holidays. The structure of the facility provides financing for 100% of the product, freight/logistics and fulfillment costs in order to fulfill the Client’s seasonal purchase orders.