King Trade Capital announced the continuing expansion of its cross-border purchase order and trade finance offering in Canada, with a $2 million purchase order finance facility for an importer of personal care accessories and a $3 million trade finance facility for a Canadian importer of automotive accessories.

In both instances, King Trade Capital was contacted by  Canadian commercial finance company’s when they could not support the growing capital needs of the two companies. Both companies had current liquidity problems that had to be addressed.

One company’s needs were spurred by rapid sales growth and the other’s resulted from seasonal cash flow constraints. In both instances, the companies had exhausted open credit terms from their suppliers and needed more inventory to fill orders. The commercial finance company’s  referred each prospect to King Trade Capital in order to leverage our expertise in funding international inventory purchases. The finance solutions provided included proper structuring of financing in-transit inventory that is being sold under direct import and drop shipment programs to US and Canadian customers.

King Trade Capital worked with both companies and introduced  factors to finance the accounts receivable and create even more liquidity for both companies. With King Trade Capital’s help, both companies negotiated letter of credit payment terms with suppliers in lieu of their existing terms, which were upfront cash deposits. As a result of our financing, the company’s significantly reduced the risk associated with providing unsecured financing in the form of cash deposits to overseas suppliers, and increased their buying power with their current suppliers.

King Trade Capital’s extensive experience in providing import finance solutions and supply of incremental capital benefitted both companies and their respective overseas suppliers who can now produce and ship knowing they will be paid on a timely basis. It also allows both companies to accept more orders from new and existing customers, providing them with the confidence and comfort to grow their order backlog knowing they have the capability to fulfill them. 

King Trade Capital is the country's oldest and largest independent purchase order, trade, and contract finance provider for small to middle-market companies in the U.S., UK and Canada. Since 1993, KTC has provided more than $1.5 billion of capital to over 300 public and private companies worldwide.