King Trade Capital announced the recent funding of a $4 million purchase order finance facility for a California-based high-end men’s apparel designer and manufacturer.  KTC was contacted by the special situations group of a national asset-based finance company to discuss a unique opportunity to help an existing client grow. The company was interested in improving the diversification and scope of its international sourcing by expanding its vendor list to include more vendors in different countries. The company did not have sufficient open credit from its vendors or the availability under their asset-based facility to support the amount of presold inventory required to fulfill a growing order book. While the asset-based finance company was comfortable in lending against inventory located in the U.S. warehouse, they sought out KTC for its expertise in funding international inventory purchases which included properly structuring the financing of in-transit inventory.

KTC quickly worked in conjunction with the client and the ABL to come up with a finance solution. The solution entails both LC (letter of credit) and DP (documents against payment) facilities for the apparel company, which gives them flexibility when dealing with each overseas supplier. KTC established an intercreditor agreement with the ABL and a national factoring company that was providing credit protection and accounts receivable collection services on behalf of the company.

The client now has multiple finance partners working together to help achieve a common goal, fulfilling and supporting future sales growth. KTC’s unparalleled experience in providing an import finance solution along with supplying the incremental capital benefitted the Company, its lenders and the overseas suppliers who can produce and ship knowing they will be paid on a timely basis. Most importantly, it allows the client to accept orders from new and existing customers that can confidently increase their amount of orders to the company knowing they have the capability to fulfill them. 

King Trade Capital is the country's oldest and largest independent 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.