King Trade Capital provides a $5,000,000 annual supply chain finance facility to a Missouri based apparel importer

Friday, April 1, 2016

King Trade Capital is pleased to announce they have established a $5,000,000 annual supply chain finance facility for a Missouri based company that designs, sources, and imports private label apparel for several iconic brands.

King Trade Capital was introduced to the company through a relationship with the factoring group of one of the nation’s largest banks.  The Company’s growth created additional capital needs that outstripped the current availability provided by the bank’s factoring facility.  Therefore, the Company needed a solution to pay for goods since the open terms and credit limits provided by the overseas vendors were not suitable to provide them the additional inventory needed.

King Trade Capital was able to structure a finance solution that takes into account the Company’s growing sales and wide range of suppliers. The facility, which provides an advance rate of 100% of the cost of the required inventory, was structured to provide multiple funding options including issuing letters of credit and advancing payments to the overseas vendors under Documents against Payment arrangements.  The finance facility also provides additional capacity to pay freight and duties, if needed.

King Trade Capital’s trade finance solution will provide the incremental capital needed to keep pace with the sales growth and diversification of the Company’s overseas vendor base. Additionally, the financing helps the Company bridge the capital gap between paying the overseas factories and delivering goods to the end-customers when they can factor invoices.

King Trade Capital is the country's oldest and largest independent provider of purchase order and contract finance for small to middle-market companies in the U.S., UK and Canada. Since 1993 KTC has provided more than $2 billion of capital in over 350 public and private companies worldwide.