King Trade Capital (KTC) was contacted by a large U.S. bank that was putting together a supply chain receivable finance facility for a Plastic Cup supplier in support of their growing sales to a Fortune 500 customer.

The bank recognized the cup supplier would need additional capital to support the growing pre-shipment costs of the cup production. The bank having previously worked together with King Trade Capital referred the company to KTC in order to offer a pre-shipment finance solution to make payments to the Chinese vendors and logistics companies in order to grow production in China to fulfill the growing sales.

KTC reviewed the clients’ and suppliers’ capabilities to import goods not only during the pandemic but during the current supply chain disruption and determined they both had the capability to perform and deliver timely the additional quantities and quality required by their customers delivery program. KTC offered cash funding to cover the purchase of the cups and is paying the logistics costs to support the timely deliveries allowing our client to grow sales by 70%.

King Trade’s PO finance solution was put in place and funded within 2 weeks. The full cycle supply chain finance offering provides a best-in-class solution for the client by joining King Trades pre-shipment finance solution with two of the clients’ receivable lenders. KTC structured an inter-creditor agreement with the international banks supply chain finance group, to support the Fortune 500 customer, and also entered into an inter-creditor with the incumbent national factoring company, who is advancing on the balance of the client’s receivables.