King Trade Capital (KTC) announed the recent funding of a $1 million government contract finance facility for a New Jersey-based manufacturer of customized emergency and surveillance vehicles.

A finance consultant introduced KTC to an operating team of investors that had acquired the manufacturer and recapitalized the business. The investor’s initial capital infusion stabilized the business and helped them restructure the bank debt while establishing a factoring relationship to support its base level of working capital requirements.

Once stabilized the Company was in need of additional financing to grow and support the production associated with a significant backlog of large contracts. The consultant realized KTC’s production and work-in-process contract finance program was an ideal solution for the Company. KTC quickly established a facility that provided financing for 100% of the cost of the required raw materials, components, and direct labor.

The structure of KTC’s facility enabled the company to execute on the large backlog of contracts without having to raise additional equity to fill those orders. Additionally, it allowed the Company to demonstrate its ability to take on more large contracts in the future.

KTC was able to work through the complexity of multiple intercreditor agreements with the factor and senior lender allowing the Company to finance the specific contracts while maintaining relationships with their existing lenders.

King  Trade Capital ("KTC") is the country's oldest and largest independent  purchase order and contract finance company focused on providing  purchase order and contract finance 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 in over 300 public and private companies worldwide.