King Trade Capital provides a small business supply chain finance facility to a California based company

Thursday, March 24, 2016

King Trade Capital is pleased to announce that it has established a supply chain finance facility for a small family owned business based in California. The company imports portable event seating customized for professional and amateur sporting events. KTC expects to provide approximately $2,000,000 in annual financing with an initial funding of $300,000.

King Trade Capital was introduced to the Company through a relationship with one of the nation’s largest banks.  The Company’s growth was creating additional capital needs that outstripped the current availability provided by the bank and its factoring facility.  With purchases from their overseas vendor increasing, the Company needed a solution to pay for goods that exceeded the open terms and credit limit provided by their overseas vendor.

The bank had the confidence to refer their customer to King Trade Capital to help the customer continue to grow and to allow the bank to maintain and grow their factoring facility. King Trade Capital was able to react quickly, structuring and closing an import finance facility in just a week.  The facility will advance funds to the overseas vendor under Documents against Payment and Documents against Acceptance arrangements after goods are in transit from Asia. The King Trade Capital finance facility also offers additional availability to pay freight and import duties, if needed.

King Trade Capital’s trade solution will provide the incremental capital needed to keep the Company’s vendor current and help bridge the financing gap created between paying the overseas factory and the time it takes to deliver goods to end-customers. The finance solution from KTC allows the company to continue growing while still using the banks low cost of capital to factor invoices once the company deliveries are made.   

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.