King Trade Capital announced the completion of a $5,000,000.00 trade finance facility for a telecommunications equipment company with operations throughout the US and Canada.
King Trade Capital was introduced to the client by an investment bank that was hired to raise capital for the acquisition, recovery and growth capital of the Client. The Client recently filed for bankruptcy and was purchased by a new owner with industry experience. The new ownership wanted to refocus the equipment sales and grow the business again.
The company had a seventeen year history of success and historically was a large supplier of telecom equipment internationally. The company was driven into bankruptcy by some major missteps of the previous management, causing it to lose significant money and then their bank financing, resulting in the inability to fulfill orders to their largest customers which stopped doing business with them and sealed their fate.
When new ownership purchased the company they brought in new management and capital to begin to grow sales again. The new capital includes King Trade Capital to provide trade finance that allows them to purchase the inventory to execute and grow sales profitably and not be constrained by a small balance sheet. KTC is in place to help the company fulfill its backlog of orders and smooth over their strained relations with their equipment suppliers.
The Client was in need of a creative and entrepreneurial finance company that understands and supports their recovery. King Trade Capital is providing a solution that includes cash and credit assurances to suppliers to free up the delivery of the equipment inventory needed to fulfill their new sales.
The trade finance solution was put in place in conjunction with a nationwide factor that is able to provide additional liquidity once the good ship to the end customers, whether in the US or internationally. With KTC’s trade finance facility in place the company is able to grow without giving up equity to investors in order to finance sales growth.