King Trade Capital Offers Creative and Flexible Financing!

Friday, January 13, 2012
Recently, an airplane parts supplier contacted King Trade Capital with a $1,600,000 opportunity to buy and retrofit parts for sale to airlines in need of a particularly scarce part.
 
The company had a senior bank facility that they had used for a number of years but their current lender made the decision to reduce the amount they lend against inventory and had ratcheted back the inventory part of their facility, requiring weekly curtailments against the inventory portion of the loan.  This, of course, placed a cash strain on the company.  So when the company was presented with this lucrative opportunity they did not have the capital available to purchase the parts for resale and they were in the unfortunate position of possibly having to forgo the chance to see exponential growth in their bottom line.
 
The company had recently learned that a particular low value and abundant part could be purchased and upgraded to a much higher value part that is in short supply and high demand, which made this quite a profitable opportunity.  The process required KTC to purchase the parts on behalf of the client and send them to an FAA-approved facility for a special one month conversion before selling to the end customers
 
Luckily, KTC was able to determine that the particular airplane parts the company planned to purchase and convert were, indeed, in high demand and would represent an exceptional return upon resale.  Due to the nature of the business and the flexibility needed to convert the parts, King Trade structured a partnership wherein KTC entered into a profit participation structure for these parts conversions.  This unique finance structure paved the way for our client to realize great profit on these parts and to further build their business and enable them to purchase more parts in the future.
 
King Trade Capital has the expertise and financial strength to provide a broad array of solutions to help bridge our Client Companies’ capital needs to fill orders and contracts.  This profit participation structure allows our clients’ interest to be aligned with KTC’s interest in the most profitable outcome.