King Trade Capital Has Established A $2,800,000 Million Contract Finance Facility For A New Jersey Based Importer And Distributor Of Waste Management Equipment (the “Company”).

Thursday, July 9, 2015

King Trade Capital (KTC) was contacted by a financial consultant to help assist a client by providing financing for the inventory needed for large incremental sales of a Company importing waste management equipment from a large European manufacturer. While the company had success obtaining large municipal contracts, they did not have sufficient credit from the overseas supplier to be able to purchase the equipment required to fulfill the new contracts.

King Trade Capital quickly worked in conjunction with the Company and its overseas supplier to come up with a finance solution. The solution entailed utilizing LCs (letters of credit) which provides an assurance of payment to the overseas suppliers. The supplier was now assured that they would be paid upon shipment and would not have to extend additional open credit terms beyond their credit parameters. The overseas suppliers had the ability to obtain pre-export financing from their bank based on the LC’s that backed our client’s orders.

King Trade Capital not only structured the financing for the acquisition of the inventory but did so by allowing the client to either sell or lease their equipment to the end customers. This flexibility offered the company the chance to continue to use a leasing company to pay for the equipment delivered to customers and KTC helped refer a factor who would finance open term sales to municipalities. King Trade Capital established an inter-creditor agreement with the factor and the leasing company. The company now has multiple finance partners working together to help achieve a common goal, fulfilling and supporting future sales growth while improving credit standing with its overseas supplier.

King Trade Capital’s experience in providing import finance solutions along with incremental capital benefitted the Company and the overseas suppliers that can produce and ship knowing they will be paid timely. Most importantly, it allows the Company to accept larger orders from new and existing customers knowing it has the capability to fulfill them.