King Trade Capital Helps New Client add $178 Million in Sales

Thursday, January 17, 2019

King Trade Capital Helps New Client add $178 Million in Sales

 

King Trade Capital (“KTC”) is pleased to announce the addition of the newest client in our portfolio of growing, well-run businesses. The company is a 26-year-old, Florida-based telecommunication supplier run by a very seasoned team in the telecom service and distribution business.

KTC was introduced to the company by its long time senior lender after the client closed a distribution agreement with a major mobile phone manufacturer to sell its phones to two of the largest US wireless carriers.

The new sales contracts will more than double the revenues of the client by adding an additional $178 million in sales that need to be financed. In order to finance their growing sales, the client needed the help of King Trade Capital to provide a finance solution so they could execute upon their sales without selling too much equity.

By utilizing KTC’s expertise and deep understanding of the risks inherent in providing PO and supply chain finance solutions, KTC was able to underwrite the customer contracts, as well as the mobile phone manufacturer’s distribution agreements, to create a finance solution.

KTC’s Andy Chong worked closely with the client and its team to underwrite and structure a solution that worked together with the current senior lender, as well as the mobile carriers Citibank supply chain invoice financing. The finance solution Andy and KTC put in place provides the cash needed to pay the mobile phone supplier for the weekly shipments.

Edward King, Founder and Managing Partner of King Trade Capital, stated “I’m proud of how our team listened to our clients’ needs and put together a finance solution that helps them grow their sales and profits when their balance sheet was not big enough to access traditional asset-based or bank financing. We make our funding decisions internally using our own capital, so we offer confidence and stability to our clients and referral sources that others cannot provide. In this instance we quickly provided an initial $9 million of cash allowing our client to keep a very tight delivery schedule at the beginning of their new program.”

For 27 years, King Trade Capital has helped good people and good companies increase their sales and profits. We are the pioneer in purchase-order finance and have the unrivalled expertise and financial capacity to help our portfolio companies prosper.  Our mission is to help people and companies thrive by providing stable, reliable, and unique PO finance solutions not offered by other finance companies. KTC is the only PO finance source that compliments and doesn’t compete with asset based lenders, factors and banks. To learn more please visit www.kingtradecapital.com or call 214-368-5100.