KTC Provides a $3MM Purchase Order Finance Line
King Trade Capital (“KTC”) is pleased to announce the completion of a $3MM purchase order finance facility for an aircraft parts company based in Texas.
King Trade Capital was introduced to the company by a prior Client of KTC’s, who suggested that King Trade’s expertise and financial capabilities could help them execute upon their sales growth.
The aircraft parts company was seeking a finance solution to help execute upon the purchase and refurbishment of parts to fulfill sales of an initial $18 Million of purchase orders from major US airlines.
KTC worked quickly to underwrite the suppliers, refurbishment facility and the airline purchase orders the Client received to create a finance solution that provided ample financial support. King Trade Capital worked closely with the existing asset-based lender to put in place an end-to-end finance solution offering PO financing to fulfill the orders, tied together with the asset based lenders facility, governed by an intercreditor agreement. King Trade and the ABL provides the company the ability to successfully grow sales as fast as their customers wish to purchase.
The offering provided by KTC includes cash payments to the Client’s suppliers to purchase aircraft parts for further refurbishment and FAA tagging before delivery to the airline. Upon delivery of the parts to the airline the existing asset-based lender will advance according to their current ABL facility.
KTC’s purchase order finance solution provides the Client with the essential financial support to purchase the necessary aircraft parts as needed to fulfill their orders and opens the opportunity to grow their programs with the airlines to as much as $30 million through Q1 of 2024.