KING TRADE CAPITAL PROVIDES $800,000 PO FINANCE FACILITY FOR SOLAR LIGHTING IMPORTER

Wednesday, May 6, 2015

King Trade Capital is pleased to announce the recent funding of an $800,000 purchase order facility for a Pennsylvania-based supplier of solar outdoor lighting.

The Company reached out to King Trade Capital for help financing the purchase of inventory to fulfill a seasonal purchase order with a large home supply company. The Company’s Chinese supplier had historically required deposits to start production but due to the large size of this season’s orders, the Company did not have sufficient capital to make the deposits.

King Trade Capital advised the Company and worked in conjunction with them and their overseas supplier to provide a letter of credit with favorable delivery terms for this season’s orders instead of the previous cash deposits that were required to start production.

King Trade Capital’s facility enabled the Company to finance 100% of the cost of the goods including freight and duties. Additionally, through the use of a properly structured letter of credit the company significantly reduced the risks associated with the purchase of inventory by eliminating their historical practice of providing cash deposits. However, perhaps best of all, because of the advice offered by King Trade Capital, the Company re-structured their terms of sale with the end customer, which had a positive impact on profit margins.

With the King Trade Capital facility in place, the Company is positioned to capitalize on its growing sales related to green energy products. As trends towards green energy continue to grow, King Trade Capital is excited by the opportunity to help the growth of companies in clean technologies for a healthier tomorrow.