King Trade Capital announced the closing of a purchase order facility for a New York-based fragrance and accessories company.

The company, a startup with an experienced management team, was in need of a flexible finance solution to help support the manufacturing of products to fulfill $11,500,000 of purchase orders from a large retailer. Despite the lack of operating history of the company, King Trade focused on the experience of the management team, their prior track record in the industry and history with the retailer from past businesses.

Given the number of suppliers involved and multiple third-party locations from which product would be shipped, King Trade structured a facility to provide letters of credit and documents against payment financing based on the terms of each specific supplier. Additionally, availability under the facility was provided to support payment of freight and logistics costs as well as third-party fulfillment and storage costs.

King Trade’s solution will allow the company to demonstrate to the retailer their ability to fulfill large seasonal orders despite only being in business for a short period of time. It will also provide the company with the support needed to fulfill future programs of similar size or larger as they continue to grow their business.