King Trade Capital Provides a $9,000,000.00 Purchase Order Finance Facility for a Growing Athleisurewear Company
King Trade Capital is pleased to announce the completion of a $9,000,000.00 purchase order finance facility for a private equity backed athleisurewear company.
The 20-year-old company, was acquired in 2020 by a private equity investor expanding its’ active lifestyle inspired portfolio of companies. The private equity firm helped the Client obtain a line of credit with a bank for the initial 2 years of its ownership of the business but as the business grew the Client was in need of additional working capital and liquidity the bank couldn’t offer to support rapidly growing sales.
King Trade Capital was contacted by the bank to investigate PO financing as a solution to help the company scale its business. King Trade Capital quickly assessed the finance need, proposed and underwrote the Client company while working along with a large national factoring company brought in by the PE investor. King Trade entered into an intercreditor with the factor as they were to advance against the Clients accounts receivables upon delivery to the end customers.
King Trade Capital ’s solution now provides cash payments to the Client’s overseas manufacturers upon presentation of documents making sure there is a consistent and smooth flow of production and delivery of inventory to the Client’s end customers.
The KTC trade finance solution coupled with the factors liquidity provides the financing needed to keep the Client’s manufacturers producing and shipping while giving the Client the ability to seek fast sales growth with the confidence they can deliver on their growing orders.
About King Trade Capital
For 30 years, King Trade Capital has helped good companies grow their sales and profits by providing PO and supply chain finance solutions. KTC is operated by its founder and its entrepreneurial team that understands the financial needs of operating and growing a business. As pioneers in purchase-order financing and non-bank trade finance, King Trade Capital has developed the expertise and unrivaled financial capacity to help companies become more prosperous by providing stable and unique PO and supply chain finance solutions.