King Trade Capital (KTC) announced the recent funding of a $1.25 million purchase order finance facility for a Florida-based importer of active wear apparel.

King Trade Capital was introduced to the client by their factoring company after the client inquired about needing a purchase order finance relationship. The client wanted a PO finance source that could easily coexist with the factor in order to support financing the inventory required to fulfill a seasonal program from a major retail chain.

Due to the increased volume of orders, the company did not have sufficient open terms from its vendors to purchase the inventory required for this program. KTC quickly came up with a solution and established a structured inventory purchase facility that provides financing with an advance rate of 100% of the cost of the required inventory by issuing letters of credit to the company's overseas supplier as well as funding for the freight, duty, and logistics costs.

King Trade Capital established an intercreditor agreement with the factor which allowed the company to finance the entire supply chain using alternative finance channels. As a result, this enabled the company to substantially increase its business with the chain for 2013.

In a related release, King Trade Capital announced that recently, the firm funded a $1 million purchase order finance facility for a New York-based importer of wireless accessories.

KTC was introduced by the client’s factoring company as its client was seeking to establish a purchase order finance relationship which would support financing of the inventory required to fulfill a large program from a regional retail chain.

KTC established a structured inventory purchase funding facility that provides financing with an advance rate of 100% of the cost of the required inventory. The facility provided cash funding to the company's overseas supplier for the cost of the in-transit inventory as well as funding for the freight, duty, and logistics costs.

KTC established an intercreditor agreement with the factor which allowed the company to establish a significant sales program with the retail chain. In addition, the client requested a two year facility with KTC so they know that they have the capability to take on larger orders from a growing customer base with no strain on cash flow.

King Trade Capital is an independent purchase order and contract finance company in the U.S. focused on providing purchase order and contract finance for small- to middle-market companies nationwide.