King Trade Capital (KTC) announced the completion of a purchase order finance facility for a California based children’s clothing and toy company.

King Trade Capital was called by a finance consultant that was helping the Client find the right finance partner to help the company grow sales and deliver $3,000,000 of PO’s awarded to them by one of the largest US retailers.

The new program with the retailer created a large capital need that exceeded their current credit facilities with their working capital lenders. The company needed a finance solution to secure production from their overseas factories to ensure that their goods would be produced and delivered fast enough to meet the delivery schedule of the customer.

Due to King Trade Capital’s 27 years of expertise providing PO and trade finance solutions, KTC was able to move quickly to structure a finance facility that provided a solution to the Client’s large capital need in order to secure production and get inventory delivered in time to fulfill the retailer’s delivery dates.

KTC was able to work alongside an existing cash flow lender and a factoring company to negotiate inter-creditor agreements with both parties to provide the Client with a complete trade cycle finance solution. KTC’s facility provides the Client’s supplier with Documentary Letters of Credit to secure production and timely shipment of goods. The factoring company will provide additional liquidity to the Client upon delivery of the goods to the end customer.

With KTC’s solution the Client is able to finance the growth in sales and keep their overseas supplier producing and shipping to fulfill the larger purchase orders.