King Trade Capital Funding Growth From Coast to Coast

Tuesday, June 28, 2011

From apparel to fixtures to thermoplastic resins, King Trade Capital is funding growth for companies from coast to coast.


King Trade Capital (“KTC”) recently provided a $10,000,000.00 purchase order funding facility for a California distributor of plastic resin. The company was introduced to KTC by its current senior lender because the company needed a unique purchase order finance solution to fulfill its growing orders.

The poly resin distributor has seen its business recover significantly after several difficult years of declining sales. The Company’s bank relationship was allowing it to maintain current sales levels; however, the lack of additional supplier credit was forcing the company to pass up on sales growth opportunities with valued customers.

KTC was able to assess the client’s needs and structure a transaction that allows the company increased buying power with its suppliers. KTC was not only able to complete its due diligence quickly, but also implemented a financing system that would enable the client to purchase resin from its suppliers and have product shipped to fill orders within 24 hours.

Speed, capacity and cost were critical aspects that brought this client to King Trade Capital. The client was looking for a cost effective, professional funding relationship as the lead times from receiving the orders to purchasing, shipping and invoicing is only a matter of a couple of days to a week. The funding facility that KTC was able to implement ensures that the company can get several additional inventory turns per month and increases sales exponentially.

Bryan Ballowe, COO of King Trade Capital remarked, “This is a perfect example of how King Trade Capital not only provides the necessary capital for companies to realize immediate sales growth opportunities, but also how we listen and understand what the company needs in order to provide a unique solution to maximize their profits.”

You Have to Wear Clothes

KTC also recently provided a $3,000,000 trade finance facility for a New Jersey company in the garment industry when a factoring company approached us with one of its existing clients that was growing very quickly. The factor asked KTC to review a purchase order finance solution that would help the garment company buy more inventory to fulfill their growing purchase orders. Although the factor had a longstanding relationship with the client they weren’t comfortable providing an over advance to help the client fulfill its recent spike in sales.

KTC contacted the client and learned they had been working to win new business with a large retailer for months and finally landed several large orders for various items for the holiday season. This was a new retail relationship, and the client needed to move very quickly in order to issue letters of credit to the overseas supplier in order to ensure timely delivery. KTC was able to complete its due diligence promptly and put in place a $3 million purchase order trade finance facility. KTC was instrumental in structuring a letter of credit with the overseas factory with suitable inspections, shipping terms and insurance requirements in order to ensure a successful delivery to the end buyer.

Goods are currently in production and set for shipment in August. Once the goods are shipped and invoiced to the end customer, the factor will advance on the resulting invoices and repay the amount due KTC.

Bryan Ballowe, COO of KTC commented, “This was a great opportunity for us and our client. Our purchase order financing solution allowed our client to ensure a timely delivery with its new customer. Additionally, this transaction illustrated how we not only move fast, but provide our expertise in structuring sound international transactions.”

KTC is a Fixture in Finance

A previous client that manufactures fixtures and displays recently returned to King Trade Capital with an immediate need for a letter of credit to buy inventory to fulfill a large one-time order from an important customer. The order entailed signage for 1300 stores across the country and needed a fast turnaround.

KTC financed this company in 2009 and after providing a successful purchase order finance solution that helped build their balance sheet and profits, we introduced the client to a traditional lender that has successfully financed them ever since.

However, with the size of this order and the capital need to purchase the inventory, the client and their lender returned to KTC for a purchase order finance solution that works in conjunction with the senior lender. Since KTC had a good working relationship with the lender, we were able to expedite an Intercreditor Agreement allowing KTC to offer a finance solution the lender was unable to provide. Within 8 business days, KTC funded the letter of credit to an overseas supplier to support the immediate production of the goods needed to promptly fulfill the order.

Give King Trade Capital a call today and see how we can help grow your business -whatever your individual purchase order financing scenario is. As the most experienced purchase order and trade finance company in the country, King Trade Capital is uniquely qualified to find a solution for you.